Autumn Budget 2025: What to expect

Business rates reform 

In its Transforming Business Rates: Interim Report (11 September), the Government confirmed that further announcements on Business Rates reform will be made at the upcoming Budget. These are expected to focus on removing barriers to investment, including: 

•  A potential marginal tax rate system, where successive bands are taxed at increasing rates 

•  Enhancements to small business rates relief and improvement relief 

Together, these changes could signal a rebalancing of the business rates burden and support the Government’s broader objective of supporting the high street through a fairer system. 

E-invoicing and corporate tax certainty 

Businesses are also awaiting updates on the Government’s e-invoicing proposals, following its consultation earlier this year. This initiative could mark a major step forward in modernising business processes and tax reporting across the UK. Organisations should ensure this is firmly on their transformation and change agendas, as it will likely require significant adjustments to processes within tax and finance departments. 

Corporate tax has been a central focus for this Government in its efforts to provide businesses with greater certainty. In the Autumn Budget 2024, it published a Corporate Tax Roadmap outlining key commitments, including: 

• Capping the headline rate at 25% for the duration of this Parliament 

• Maintaining full expensing and R&D reliefs

Further measures to provide additional certainty currently under consultation may be addressed in the upcoming Budget, focused on targeting major investment projects and R&D tax relief. An update is also expected on changes to the transfer pricing regime, including the proposal the Government has recently consulted on to remove the exemption from transfer pricing for medium-sized groups. 

What the Budget could mean for individuals and entrepreneurs? 

While the Government has pledged not to raise income tax rates, this does not preclude it from increasing revenue altogether from income tax. The specific wording of the pledge applies only to rates, leaving thresholds—an equally important lever—outside its scope. 

These thresholds, which it should be noted are devolved in Scotland, are already frozen until April 2028. As incomes rise, this freeze will result in fiscal drag, meaning more people are paying tax or paying tax at a higher rate, increasing overall tax receipts. Extending the freeze on income tax thresholds beyond 2028 could generate billions in additional revenue, with much of the impact only felt in future years—potentially allowing it to go largely unnoticed by the public. 

However, the Chancellor boxed herself in at the Autumn Budget 2024 by committing to resume inflation-linked uprating of thresholds from 2028–29. So while not a manifesto pledge, rolling back on that promise would likely not escape political scrutiny. 

Focus on wealth? 

The Government’s Budget press release, titled “Budget to address economy that’s not working well enough for working people,” suggests that “working people” will be at the heart of the 2025 Budget, as they were in 2024 —potentially signaling that  increased taxation on the wealthy could again be a key source of revenue. 

However, beyond the headline, the Government is also prioritising fiscal stability, investment and economic growth. The OBR’s Fiscal Risks and Sustainability Report (July 2025) warned of the risks associated with relying too heavily on a small, mobile group of high earners for revenue. Perhaps some of this sentiment may have fed through to the Chancellor’s narrative, most notably on her opposition to a wealth tax, with the Chancellor describing it as a “mistake” and “unproven”. 

Still, calls from within the Labour Party—especially during the current deputy leadership campaign—to revisit the idea of a wealth tax highlight the delicate balance the Chancellor will need to strike between party politics and the Chancellor’s priorities. 

While a broad wealth tax may not be top to the Chancellor’s wish list, this doesn’t rule out targeted measures on specific forms of wealth. Recent speculation has centered on: 

• Potential reforms to Inheritance Tax—including tighter rules on lifetime gifts 

• Further changes to Capital Gains Tax and the taxation of pensions 

• Property taxation, with growing support for reforming Stamp Duty Land Tax (SDLT), which is often criticised for hindering growth. Although there may be strong policy rationale for reform, the revenue impact is uncertain, depending heavily on the specific design. Additional proposals speculated on for raising property-related revenue include: 

• • imposing national insurance on landlords
  • restricting primary residency relief (from CGT) on high value properties
  • extending SDLT to the sale of entities holding real estate. 
    
    

What’s next? 

The Government entered office with a bold commitment to drive economic growth, reassuring the electorate that it wouldn’t adopt a tax-and-spend approach. The upcoming Autumn Budget is set to be a pivotal moment in whether the Government can deliver on this. 

Stay informed by signing up to our Autumn Budget content. We’ll explore in greater detail what the Budget could bring as we head towards 26 November and share our Insights on the day itself. 

This period presents a valuable opportunity for businesses and individuals to assess their tax position and consider how potential reform could impact them.  For tailored advice or to discuss how possible changes may affect you or your business, please get in touch.