The Autumn Budget 2025 presents a series of fiscal measures aimed at stabilising the UK economy, addressing the ongoing cost-of-living crisis, and ensuring long-term growth. With public finances under pressure, the Chancellor has outlined a plan to increase tax revenues while also providing targeted support to households and businesses.
This report breaks down the key fiscal measures and explains their expected impact in straightforward terms, covering many of the major changes. However, given the extensive nature of these reforms, please feel free to contact us for more detailed, specific information tailored to your individual circumstances.
So what did the Lambert Chapman team think of the announcements?
Lucy Orrow – Tax Partner
“It’s not a Budget of nothings, but it’s definitely had me scratching my head. There are so many ‘bits’ and ‘pieces’ around the edges which have been tweaked.”
“When farms are struggling to make a living as a result of subsidies being removed and weather conditions impacting yields, I would understand why some may be considering their options for the future.”
“The Chancellor managed to walk the line between keeping Labour backbenchers reasonably happy without spooking the markets. If she has to come back again next Budget seeking further ways to increase the tax take, I’m not sure she will be so fortunate.“
“If the government spent the time and effort dealing with inappropriate tax loopholes, the UK economy may be in a much healthier position much sooner – the question has to be, why aren’t they doing this?”
“Almost a year on, the hospitality sector has been hit again! The latest measures are only going to further damage the sector. Previous increases in employers’ National Insurance have already had a major impact.”
Graham McNeill – Partner
“No change in tax bands was predicted correctly, but there are increased tax rates on property income, savings income, and dividends by 2 percentage points – another broken promise?”
“As someone dealing with many charity clients, I do hope that this measure will have the desired effect of reducing the number of children living in poverty, which is apparently around 44% for children in families with three or more kids.”
“Whatever measures are put forward won’t be willingly accepted, but we have a debt issue that needs attention. We had feared a basic rate increase and an attack on the Limited Liability Partnership, but both faded pre-budget.”
Sean Wiegand – Partner
“I was surprised to hear that we will return to a surplus of £3.9billion as soon as 2028-29. Whether that happens, of course, remains to be seen, but one way or another, we need to get there.”
The way in which tax charges (or tax relief, as appropriate) are applied depends upon individual circumstances and may be subject to change in the future. The information in this report is based upon our understanding of the Chancellor’s Budget 2025 announcements, in respect of which specific implementation details may change when the final legislation and supporting documentation are published
Posted by Lambert Chapman
Disclaimer
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.