Everything Points To Tax Rises In The Budget on 26 November

1st November 2025

Experts widely expect Rachel Reeves' Autumn Budget to include tax hikes and spending cuts aimed at plugging a fiscal gap of up to £50 billion. Asset-rich households and property owners are likely to be targeted.

A breakdown of the most anticipated outcomes and expert predictions

Tax Increases on the Horizon
Wealth Tax Proposal: A 2% annual levy on assets over £10 million could raise £24 billion per year.

Inheritance Tax Changes
From April 2027, bereaved families may face a 40% tax on unused pensions and death benefits. A lifetime cap on gifts before death is also under consideration.

Stamp Duty Overhaul in England
The current system may be replaced with a property tax on homes valued above £500,000.

Income Tax Rethink
Despite Labour's manifesto pledge, Reeves is reportedly considering a 1p rise in the headline rate to generate £8 billion.

Spending Cuts and Public Services
Cuts are expected across NHS, education, and policing, though specifics remain unclear.

Reeves is under pressure to maintain fiscal stability without triggering market panic, especially in light of the 2022 mini-budget fallout.

Economic Context and Challenges
The UK faces high inflation, sluggish growth, and elevated borrowing costs, leaving Reeves with limited fiscal headroom.

Experts warn of "seismic consequences" for debt markets if the budget misfires, with 10-year gilt yields already at 4.4%.

Strategic Focus
Reeves has signalled she'll target those with the "broadest shoulders," meaning asset-rich individuals rather than wage earners.

The budget is expected to balance short-term household support with long-term financial stability.

What steps can individuals take now to alleviate the possible outcomes of the budget

To prepare for Rachel Reeves' Autumn Budget, individuals should review their finances, consider tax-efficient strategies, and brace for potential changes to pensions, property, and inheritance rules.

A guide to help stay ahead

Review Your Tax Exposure
Income Tax Planning: With thresholds likely to remain frozen, more people may be pushed into higher tax brackets. Consider salary sacrifice schemes or pension contributions to reduce taxable income.

Capital Gains Tax (CGT): Anticipate reduced reliefs and higher rates. If you’re planning to sell assets, doing so before the budget could lock in current rates.

Property and Inheritance Strategies
Stamp Duty Changes: If you're buying or selling property, act quickly. A new property tax could replace stamp duty for homes over £500,000.

Inheritance Tax (IHT): Expect tighter rules on lifetime gifts and pensions. Review your estate plan and consider using trusts or gifting strategies now.

Pension Adjustments
Unused Pension Assets: From April 2027, these may be taxed at 40% upon death. Consider drawing down or reallocating pension funds to reduce exposure.

High-Earner Relief: Salary sacrifice schemes may be restricted. Maximise current allowances while they’re still available.

Budget for Higher Living Costs
Public Service Cuts: NHS, education, and policing may face reductions. Prepare for longer wait times or increased private costs.

Inflation and Interest Rates: With economic uncertainty, build an emergency fund and avoid high-interest debt.

Stay Informed and Flexible
Track Budget Announcements: The statement is expected on 26 November 2025. Stay updated to act quickly on any changes.

Consult Financial Advisors: A professional can help tailor strategies to your situation, especially if you own property or have significant assets.