Winners and Losers - Autumn Budget 2025

The Chancellor’s Autumn Budget 2025, underpinned by the Office for Budget Responsibility’s latest Economic and Fiscal Outlook, sets the UK on a path of slower growth, higher near-term inflation, and a record tax take of 38% of GDP by 2030-31. While fiscal targets are narrowly met, the outlook remains highly sensitive to productivity and interest rate risks. Below, we outline the key winners and losers from this year’s Budget. 

Winners 

• Low-Income Families - removal of the two-child benefit cap. 
• Young workers - National Minimum Wage to increase for 18-20 year-olds to increase to £10.85 per hour. Coupled with improvements to apprenticeship schemes.  
• High Growth Companies wanting to attract investment - larger companies will be able to benefit from EIS and VCT investment. 
• Businesses Investing in Certain Assets - new 40% first-year allowance for qualifying assets but partly offset by reduction in writing-down allowances.  
• Companies wanting to incentivise employees with shares - improvement to Employee Management Incentive (EMI) Options 
• Vehicle Owners (Short Term) - fuel duty freeze until September 2026 delays cost increases for motorists. 

Losers 

• Taxpayers Across the Board - extended freeze on personal tax thresholds until April 2031 pushes millions into higher tax bands. 
• Investors - dividend tax rates rise by 2% from April 2026 (although higher rate will remain at 39.35%). Savings and property income tax rates rise by 2% from April 2027. 
• Employers & Employees Using Salary Sacrifice - NICs applied to salary sacrifice pension contributions above £2,000/year from April 2029. 
• Electric Vehicle Drivers (Long Term) - mileage-based charge will be introduced from April 2028 to replace declining fuel duty revenues.  
• High-Value Property Owners - new council tax surcharge on properties over £2 million from April 2028. 

Our initial comments 

After an unprecedented period of speculation of what might or might not be announced, with almost daily press comment and seemingly various U-turns and policy shifts, the Autum Budget ultimately left a number of areas unchanged.  

There were no significant reforms affecting Inheritance Tax (IHT), broader Capital Gains Tax (CGT) structures, trust taxation, or pensions (beyond salary sacrifice). R&D tax incentives remain in place, and corporation tax rates have been left untouched.  

Overall, there are many tax planning opportunities available, meaning strategic tax planning and proactive cash flow management remain essential for both individuals and businesses navigating these changes.  

It appears it was a budget to calm the markets and to demonstrate that the Government are serious in meeting their fiscal rules. Certainly, wanting to avoid a Liz Truss moment. However, we can't hide away from the fact that £1 in every £10 goes to interest (not any repayment of debt). We need to get the economy growing to start paying the debt down.   

Join our Autumn Budget Online Seminar 

Join us live tomorrow at 9:30am, where our panel of experts will discuss tax planning opportunities for you and your business, as well as guest speakers from other businesses to discuss the economic impacts. You will also have an opportunity to raise your questions to our advisory panel. Click here to register. 

If you have any questions regarding any of the topics raised or would like to receive advice on how these changes affect you or your business, contact one of our experts here, so that we can help you maximise your potential.