Autumn Budget 2025: Forward thinking
- Alex Shairp
- Nov 10
- 2 min read
As the 2025 Autumn Budget fast approaches and speculation heats up about potential announcements, it's hard to know what to do with your finances (if anything) in advance of the key fiscal event.
What we do know is that National Institute of Economic and Social Research (NIESR), an independent think tank, forecasts the government will miss its self-imposed target. It predicts a £41.2bn deficit by 2029/30. To address this, the Chancellor may need to raise billions through tax increases, spending cuts or additional borrowing. Consequently, NIESR suggests the Autumn Budget should include 'a moderate but sustained increase in taxes." Adding 'Substantial adjustments in the Autumn Budget will be needed if the Chancellor is to remain compliant with her fiscal rules.'
While we always advocate taking control of your finances, we obviously can't predict the exact policy announcements. Focus areas could include changes to tax reliefs and thresholds (such as pensions, Income Tax bands and Capital Gains Tax), Inheritance Tax (IHT), tax-efficient savings, Dividend Tax and business owner tax planning, including Entrepreneur's Relief.
Proactive financial planning ahead of the 2025 Autumn Budget
We know that any information at this point is purely speculative. Useful things to think about could be the simple ones like maximising ISA contributions, assessing your current pension contributions and realising capital gains (if relevant to your individual circumstances). Also, revisit your pension inheritance strategy is wise now that IHT on unused funds seems likely.
Whatever the Autumn Budget brings, we can review your financial plan, making sure you have a clear idea of what may be worthwhile addressing now, and how to respond to changes after the event.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice, and certain forms of estate planning.
