TTR Barnes

On Tuesday 26 November, Chancellor Rachel Reeves will deliver her first Budget since taking office, a pivotal moment for the new Labour government and the UK economy.

In her pre-Budget speech, Reeves spoke of making the “necessary choices” to bring down NHS waiting lists, national debt and the cost of living, while keeping the economy on a stable, sustainable path.

The Budget will be presented to MPs in the House of Commons shortly after Prime Minister’s Questions, starting around 12:30pm. It will outline the government’s plans for taxation and public spending.

This Budget comes at a critical time when the Chancellor has pledged to meet two self-imposed fiscal rules:

• Not to borrow for day-to-day spending by the end of this Parliament
• To reduce government debt as a share of national income within the same timeframe

Meeting these commitments will require difficult decisions, likely a mix of targeted tax increases and careful spending restraint. With inflation still above target and public debt at record levels, Reeves is expected to balance fiscal discipline with support for growth, households, and essential services.

While full details will be confirmed on Budget Day, several areas are under close watch:

Income Tax and National Insurance

The government could extend the current freeze on income tax and National Insurance thresholds beyond 2028. This “stealth tax” effect means that as wages rise, more earners move into higher tax brackets.

There is also speculation that Reeves may shift the balance between NI and income tax, following recommendations from the Resolution Foundation to lower NI while increasing income tax by the same amount.

Pensions

Reports suggest the Chancellor may limit the National Insurance relief available under “salary sacrifice” pension arrangements to £2,000 per year. This could raise around £2bn and align NI treatment more closely across income types.

Property and Wealth Taxes

Reform to property taxation is also being discussed. Possible measures include replacing stamp duty with an annual property tax, revisiting capital gains tax rules for home sales and reviewing council tax structures.

Business and Employment

Reeves has indicated that online gambling and banking sectors could face higher taxes. There’s also a proposal for a “youth employment guarantee” consisting of paid placements for young people out of work for 18 months or more.

Energy and Cost of Living

To ease household pressures, the government may cut VAT on energy bills (currently 5%) or reduce regulatory costs passed on by suppliers. Reeves has also hinted at targeted support measures for low-income households while inflation remains elevated.

Electric Vehicles

A potential new tax on electric vehicles could help offset falling fuel duty revenues as more drivers switch to cleaner transport.

Following the Chancellor’s statement, MPs will debate the measures over several days before voting. The Office for Budget Responsibility (OBR) will release its independent economic forecast alongside the Budget, setting the tone for the government’s financial outlook.

At TTR Barnes we’ll be monitoring all announcements closely and providing a comprehensive Budget summary following the event, including what the changes mean for individuals, businesses, and investors.

Each business is different, and the best way to approach tax planning is to have open, early conversations with your accountant, someone who knows your business and can help you see the full picture.

At TTR Barnes, we are here to support you with clarity and remove complexity throughout your annual tax planning.  Please do speak to our expert tax team about your individual circumstances and let us help make the next year the most tax-efficient yet.

All information correct at time of going to print/live and on the best knowledge and understanding of the author at the time. This article is for general information only and does not constitute financial advice or recommendations for individual circumstances. No responsibility is taken for any actions taken on the base of the information within this article.