Rachel Reeves’ Autumn Budget: What businesses and individuals should expect

With the Autumn Budget now set for 26 November 2025, Chancellor Rachel Reeves faces one of the most closely watched fiscal events in recent memory. After a summer of flat economic growth, higher-than-expected borrowing, and fresh pressure from markets, the Budget will be a test of how the new government balances growth, stability, and fairness.

At JW Hinks, we’ve been keeping a close eye on developments. Here’s what’s changed since our last update – and what businesses and individuals should be preparing for.

1. Extra fiscal room – but caution still rules

A recent correction to HMRC’s VAT data revealed an unexpected boost to public finances – around £3 billion in additional revenue. While this gives the Chancellor slightly more room to manoeuvre, it doesn’t remove the underlying challenge: a potential £20–50 billion gap between current plans and fiscal targets.

In short, we may see a Budget that avoids headline tax rises but still raises revenue through “stealth measures” such as frozen thresholds and rebalanced tax rates.

2. National Insurance and Income Tax – possible shifts ahead

One of the most talked-about proposals ahead of the Budget is a rebalancing between National Insurance and Income Tax.

Economic think tanks have suggested Reeves could cut employee National Insurance by 2p while adding 2p to all income tax bands. This change would broaden the tax base – capturing income from pensioners, landlords, and the self-employed – while keeping the government’s promise not to raise overall tax rates for “working people.”

It’s politically sensitive but fiscally effective, so businesses should watch this closely.

3. Business Rates and Growth Investment

Reeves has indicated that supporting productivity and investment will be a major focus. We expect:

• Continued reform to business rates, potentially with targeted relief for small and high-street businesses.
• Announcements around planning reform and infrastructure investment, aimed at driving long-term growth.

While these moves may not immediately reduce costs, they could set the stage for a more predictable and growth-friendly business environment.

4. Possible adjustments to Capital Gains and Wealth Taxes

Wealth and property taxation remain under review, particularly Capital Gains Tax and Inheritance Tax reliefs.

Although sweeping rate changes are unlikely, aligning CGT rates closer to income tax bands – or tightening exemptions – has been floated as a way to raise funds without breaking manifesto promises.

Property investors, landlords, and business owners planning disposals should pay close attention to any updates in this area.

5. The balancing act: Growth, Fairness, and Fiscal Reality

Reeves has made productivity and “sound money” central to her economic message. However, with the Office for Budget Responsibility expected to downgrade growth forecasts, the Chancellor faces a tough balancing act: raising funds without dampening investment or consumer confidence.

What you can do now

Whether you’re a business owner, landlord, or self-employed professional, a few proactive steps can help you stay ahead:

• Model your 2026 liabilities early – Allow for possible threshold freezes or small rate changes.
• Keep records digital – With Making Tax Digital for Income Tax approaching (from April 2026), now is the time to adopt compliant systems.
• Stay informed – JW Hinks will issue an in-depth Budget summary once measures are confirmed, outlining what they mean for your business and personal finances.

Final thought

This Autumn Budget will be a defining moment for the new government – and for taxpayers across the UK.

While Reeves has slightly more fiscal breathing space thanks to recent adjustments, difficult choices still lie ahead. Businesses and individuals alike should prepare for a Budget focused on rebalancing the tax system, promoting growth, and maintaining credibility.

At JW Hinks, we’ll continue monitoring developments closely and will share a detailed breakdown of key measures and opportunities following the Budget announcement on 26 November 2025.