Summary
- Chancellor Rachel Reeves will deliver the Autumn Budget at lunchtime on Wednesday, 26 November
- Tax hikes are expected as Reeves tries to balance the books
- Labour pledged not to raise National Insurance, income tax rates and VAT in the 2024 election manifesto
- The chancellor is reportedly set to cut the cash ISA limit to £12,000 per year – there’s currently an overall £20,000 annual ISA allowance
What is the Budget? | What’s expected in Reeves’s Budget? | Which taxes could go up?
What has Rachel Reeves said about the Budget – and what could be announced?
Chancellor Rachel Reeves gave a rare pre-Budget speech on 4 November, during which she pledged to cut NHS waiting lists, cut the national debt and cut the cost of living.
She promised a Budget “for growth with fairness at its heart… and a Budget that supports businesses – to create jobs and to innovate”.
However, it’s widely expected that a slew of tax hikes will be announced tomorrow.
In the 2024 Labour Party manifesto, the party promised not to raise National Insurance, the basic, higher, or additional rates of income tax, or VAT, so the chancellor will likely need to look elsewhere.
This could mean extending the ongoing freeze on income tax thresholds, from 2028 to 2030.
Another way the chancellor could boost Treasury coffers is a clampdown on salary sacrifice, or targeting dividend tax or capital gains tax.
There could also be a shake-up to property taxes, inheritance tax, and/or business taxes.
It was rumoured Reeves was considering raising income tax rates by 2p, and cutting National Insurance by the same amount, in a move which could raise £6 billion, according to think tank the Resolution Foundation.
However, the chancellor has reportedly since backed away from this idea.
Good afternoon and welcome to MoneyWeek’s Autumn Budget live report. Chancellor Rachel Reeves is due to announce her 2025 Autumn Budget at lunchtime tomorrow, Wednesday 26 November. We will be covering the announcements as they happen, as well as bringing you reaction and analysis.