UK Autumn Budget 2025: What Households and Businesses Need to Know

Last week, the Chancellor delivered the Autumn Budget 2025, outlining a mix of tax changes, household measures, and business incentives aimed at supporting growth while keeping public finances on track. Ahead of the official announcement, the Office for Budget Responsibility (OBR) accidentally published its forecasts early, confirming stronger-than-expected economic growth and predicting inflation to fall to 0.4% next year.

The Budget highlights that around £1 in every £10 of public spending currently goes on debt interest. To help manage this, the Chancellor announced a combination of frozen tax thresholds, targeted increases, and incentives for investment. Personal tax thresholds will remain frozen until 2031, while rail fares, prescription charges, and fuel duty will stay at current levels. Household energy bills are expected to be reduced under the new measures.

The Budget also introduces changes for higher earners and property owners. Property, dividend, and savings income will see a 2p increase in tax, and high-value homes will face a new council tax surcharge—ranging from £2,500 for properties over £2 million to £7,500 for homes above £5 million. From April 2029, high earners using salary sacrifice for pension contributions above £2,000 per year will pay both employer and employee National Insurance. Additionally, capital gains tax relief on sales to Employee Ownership Trusts will drop from 100% to 50%, affecting some business succession plans.

Families and younger people also benefit from the Budget. The two-child benefit cap will be removed from April 2026, and every school will receive funding for a library. Workers aged 18–20 will see their National Minimum and Living Wage increase, adding around £1,500 to their earnings each year.

Businesses remain a key focus. Over 750,000 retail, leisure, and hospitality properties will benefit from permanently lower business rates from April 2026, supported by a £4.3 billion package to reduce sharp increases at the next revaluation. Film studios will keep 40% rates relief until 2034, fuel duty will remain frozen with the temporary 5p cut extended to August 2026, and online retail duty loopholes for low-value imports will be closed. Under-25 apprenticeships will continue to receive free training for SMEs.

To encourage investment, the Chancellor confirmed a permanent 40% First Year Allowance and retention of the £1 million Annual Investment Allowance. £2 billion will support the transition to electric vehicles, including 10-year business rates relief for charging infrastructure. Fast-growing firms will benefit from expanded enterprise tax incentives, a three-year stamp duty exemption for new UK stock market listings, and ISA reforms expected to channel up to £3 billion toward UK-listed companies. Corporation tax remains at 25%.

Andy Munden, Managing Partner and Chartered Legal Executive at Warner Goodman LLP, commented on the announcement: “While the Budget did not introduce some of the far-reaching changes that had been widely speculated in the media, it includes a number of significant measures that will affect households, property owners, and businesses. At Warner Goodman, our expert lawyers are well-placed to help clients understand the practical implications of these changes.”

For guidance on how the Autumn Budget 2025 may affect you, your property, or your business, please contact us on 01329 288 121 or email enquiries@warnergoodman.co.uk.

For readers who wish to review the Autumn Budget in full, the complete speech delivered by the Chancellor is available to view here.