Finance News

What could it mean for your money?


Lights on in skyscrapers and commercial buildings on the skyline of the City of London, UK, on Tuesday, Nov. 18, 2025. U.K. business chiefs urged Chancellor of the Exchequer Rachel Reeves to ease energy costs and avoid raising the tax burden on corporate Britain as she prepares this year’s budget.

Bloomberg | Bloomberg | Getty Images

The run-up to this year’s U.K. Autumn Budget has been different from the norm because so many different tax proposals have been floated, flagged, leaked and retracted in the weeks and months leading up to Wednesday’s statement.

This “kite flying” of policy proposals — designed to test public and market reaction to an idea before committing to it — has attracted criticism, with analysts saying it has caused confusion and uncertainty for the public, business community and investors.

It has also made it harder to gauge what we’re going to get when Finance Minister Rachel Reeves finally unveils her spending and taxation plans for the year ahead.

Businesses have pleaded with Reeves not to launch another tax raid on them after last year’s budget saw industry bear the brunt of around £40 billion ($52.5 billion) in tax rises, with increases to employer payroll taxes and the national minimum wage.

While business may not be off the hook this year, Reeves’ promise not to repeat that raid has meant that workers, the wealthy, property and pension contributions are now being seen as other potential sources of extra revenue for the Treasury.

U.K. Chancellor of the Exchequer Rachel Reeves prepares to speak to the media during a visit to a branch of the Tesco supermarket chain on November 19, 2025 in London, England.

Leon Neal | Getty Images News | Getty Images

Reeves finds herself in a bind when it comes to the budget, having imposed strict “fiscal rules” on the Treasury, including that day-to-day spending is funded by tax receipts, rather than borrowing, and that the budget is balanced or in surplus by the end of the decade.

Those rules, accompanied by higher borrowing costs, fewer welfare spending cuts than anticipated and a lower growth and productivity outlook, have left the finance minister with an estimated £20 billion fiscal hole to fill.

In addition, Reeves is expected to want to increase the amount of fiscal “headroom” (a buffer the Treasury has to increase spending or cut taxes without breaking her fiscal rules) she has from around £10 billion to £15 billion.

Just as importantly for Reeves will be the latest economic forecasts from the Office for Budget Responsibility (OBR) that will be released in tandem with her budget statement. These forecasts are crucial for markets and investors as assess what impact the Treasury’s plans will have.

CNBC takes a quick look at what we could get from the Autumn Budget, and the OBR:

Tax rises

Tax rises are never popular, but the evaporation of Reeves’ fiscal room for maneuver and a deteriorating economic outlook have made hikes an inevitabality. For her part, Reeves has said repeatedly…



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What could it mean for your money?

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