How to prepare for the Autumn Budget

The media is speculating heavily about the upcoming Autumn Budget (expected on Wednesday, 26 November 2025). In particular, many commentators are now predicting a rise in income tax after Chancellor Reeves failed to rule this out in a recent press interview.

Instead, the Chancellor appears to be laying the groundwork for some unpopular decisions in the Autumn Budget. Two particular quotes stand out: “I have to face the world as it is, not the world that I want it to be”; and: “We will all have to contribute [to fix the economy]”.

Unfortunately, nobody can predict what the Chancellor will decide. However, there is still time to ensure your financial plan is built on the strongest possible foundations, regardless of what the policy announcements might be on 26 November.

Below, our financial planners offer a short guide on how to prepare for (what looks to be) a very significant Autumn Budget.

Key Areas Under the Spotlight

The UK government is facing immense pressure to fix the public finances. Economic growth has been weak since the second quarter (Q2), inflation has remained stubbornly above the Bank of England’s (BoE) 2% target, and government borrowing costs have soared in 2025.

The country now faces a huge national debt (94% of GDP, according to the Chancellor) and a large fiscal deficit - i.e., the UK spends considerably more than it raises in taxes. To address this picture, the government is likely focusing on tax increases (cutting spending and/or borrowing significantly more are not very palatable options for the government).

With this backdrop in mind, here are some of the main fiscal policy areas under the spotlight:

• Freezing or delaying increases in tax thresholds. This route would lead to “fiscal drag” (or a “stealth tax”) - i.e. as more people receive higher salaries, more people also enter higher tax brackets.
• Reforms and/or possible increases to Capital Gains Tax (CGT). This happened in last year’s Autumn Budget, with the headline rates for basic and higher rate taxpayers immediately rising to match those on gains for residential property. In this budget, the Chancellor might revisit this area - e.g., aligning CGT rates more closely with income tax, reducing reliefs, or making other changes.
• Changes to Inheritance Tax (IHT). The Chancellor has many options here, such as lower thresholds, tighter exemptions and changes to lifetime gifting rules.
• Possible property-related taxes. Successive governments have repeatedly shown a lack of favour towards landlords (e.g. the Renters’ Rights Act 2025, which just received royal assent). Here, the Chancellor might target changes to stamp duty, transaction taxes or new levies for higher-value homes.

Many other possibilities are on the table, including possible restrictions or changes to pension tax reliefs, ISA allowances and other tax-efficient wrappers.

Now, following media statements by the Prime Minister and Chancellor, it is even conceivable that income tax could be raised (something that was ruled out in the Labour manifesto in 2024).

How Can I Prepare?

Unfortunately, until the Chancellor delivers her speech on 26 November, nobody knows her will or mind except herself. It is impossible to accurately predict what the government might decide. So, it would be unwise to make big financial planning decisions based on what “might happen”.

That said, there is still much you can do to ensure your financial plan is ready for various policy scenarios. For individuals, now is a good time to review your income tax position. What would happen, for instance, if you suddenly received a bonus or pay rise? Would you be pushed into a higher tax bracket? What if the “freeze” on income tax bands is extended beyond the current April 2028 deadline - would future pay increases push you over the edge?

For such individuals, a financial adviser can help you navigate your options. For instance, it may help to use pension contributions and other tax-efficient savings. The former, in effect, can lower your taxable income - putting money into your pension that would have gone to the government. (However, please note that pension tax relief and rules may change in future).

Those holding assets that might attract higher CGT (shares, property, business interests, etc.), it may be worth talking to an adviser about the possible timings of sales/gains in light of possible changes to CGT rules.

For business owners, the Autumn Budget is leading many to review their tax planning with respect to company structure. For instance, how might changes to corporation tax, NICs, reliefs or employment taxes bear upon your decisions and future planning? Here, a financial planner can be especially valuable to help you “war game” different possibilities using solid data.

Invitation

The Autumn Budget is causing a lot of worry and uncertainty. However, do not act out of alarm. Remain true to your long-term financial plan agreed with your adviser.

It never helps to make decisions out of fear or panic. It does help to be alert, and to have a trusted, knowledgeable adviser by your side - guiding you through the uncertainty.

If you’d like to ensure you’re taking the right steps to protect your wealth and safeguard your financial future, please get in touch.

Your capital is at risk. Investments can go down as well as up, and you may not get back the amount you originally invested. Past performance is not indicative of future results. Diversification does not guarantee profits or fully protect against losses. Tax treatment depends on individual circumstances and may change in the future. This content is for information only and does not constitute personal financial advice. Readers should seek independent financial advice before making any investment decisions.