Autumn Budget 2025 predictions for businesses
On Wednesday, 26 November, Chancellor Rachel Reeves will deliver the Autumn Budget for 2025. With borrowing reaching £99.8 billion in the first half of the 2025–26 financial year, the government faces increasing pressure to make difficult decisions on tax and spending.
Analysts predict measures could include tax rises and spending cuts totalling around £30 billion. For businesses, understanding the impact of any potential changes is vital for financial planning and compliance.
In this blog, we will share our key Autumn Budget 2025 predictions, highlight any potential Autumn Budget tax changes and provide practical steps to help businesses prepare ahead of the budget announcement in November.
Predictions for Autumn Budget tax changes
An extension of Income Tax threshold freeze
The current freeze on income tax thresholds, set until 2027/28, may be extended to 2030. This means the point at which employees start paying higher tax rates won’t increase with inflation or wage growth. For businesses, this may lead to higher payroll costs as staff seek salary increases to offset the impact, potentially affecting retention and overall employee satisfaction.
Reform of property taxes
Changes to property taxation, such as higher council tax bands or capital gains tax adjustments on commercial properties, could increase operating costs for businesses that own property. Companies may need to review property portfolios and factor in higher taxes in future budgets.
National Insurance Contributions (NIC) on rental income
If rental income becomes subject to NIC, businesses that own rental or commercial properties could see increased costs, impacting cash flow and profitability. Companies may need to reassess rental strategies or adjust pricing for tenants.
Business rate reforms
Changes this year will see businesses that use large/high value premises pay higher rates, with smaller high street premises retaining some discounted business rates. It seems likely that further changes to increase business rates certain industries and a gradual reduction in discounts for smaller businesses will continue in 2026 and beyond.
Key Areas for Businesses to Consider Ahead of the Autumn Budget
Financial forecasts
Take a close look at your cash flow, budgets, and profitability projections. Consider different scenarios based on possible tax increases, payroll cost rises, or changes to business rates. This will help you identify potential shortfalls early and make informed decisions about spending, investment, and hiring.
Tax position and liabilities
Engage a qualified taxation expert to review your business structure, corporation tax obligations, and other liabilities. Advisors can help identify opportunities for tax efficiency, highlight risks, and ensure you’re prepared for any reforms that could affect your business.
Payroll and employee costs
Businesses should review how changes to income tax thresholds or National Insurance could impact employee take-home pay and overall payroll costs. These areas are key for maintaining financial stability and workforce planning.
Property and business rates
If your business owns or rents property, review current business rates and potential increases. Consider options such as appealing valuations, budgeting for higher costs, or adjusting lease agreements to mitigate the impact.
Legislative developments
Keep up to date with official announcements from HM Treasury and the Office for Budget Responsibility. Regularly consult with your advisors so you can respond quickly to any changes and adjust your financial and operational plans without disruption.
How Edwards can support your business ahead of the Autumn budget
Stay ahead of potential tax changes and financial challenges with expert guidance from Edwards. Our corporate taxation team can help you assess your financial position, identify risks, and plan strategically so your business is ready for whatever the Autumn Budget 2025 may bring. Contact Edwards Accountants today to see how we can support you.
