What the 2025 Autumn Budget Means for People Across the UK

The Autumn Budget 2025 summary matters because it shapes the financial environment that households, workers and families across the UK will experience in the years ahead. This breakdown gives a clear view of the main tax decisions, welfare changes and economic forecasts, based on the official Budget documents and the latest analysis from the Office for Budget Responsibility (OBR).

For the primary source, you can read the Budget itself on GOV.UK:Government Autumn Budget
And you can view the OBR’s full report here: OBR November Report

Key Changes in the Autumn Budget 2025

This Autumn Budget 2025 summary highlights a mix of tax rises, targeted welfare changes and updates to the economic outlook. Some measures offer additional support, while others increase the overall tax burden.

Economic Outlook: Slower Growth, Higher Inflation

According to the OBR, the economy is forecast to grow at around 1.5% a year, slightly below previous expectations due to ongoing weakness in UK productivity. Inflation remains higher for longer:

• 3.5% in 2025

• 2.5% in 2026

• Returning to the 2% target in 2027

Wages are expected to rise, but slower than the pace seen in 2024. Real household income growth remains limited.

How the Budget Affects Households

Tax Changes in the Autumn Budget 2025

Taxes are set to reach the highest level on record by the end of the decade. This comes from a combination of new measures and previously planned threshold freezes. Key decisions include:

• Income tax thresholds frozen until 2028–29

• More people moving into higher tax brackets through fiscal drag

• National Insurance now applied to salary-sacrificed pension contributions

• Increased rates on dividends, savings income and property income

• A mileage-based charge for electric vehicles from 2028

The OBR’s tax analysis can be viewed here: OBR Fiscal Outcome

If you want to understand the technical side of how tax decisions affect long-term planning, you can find a general overview of our approach here: Planning the future

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Welfare Reforms and Support

The Budget introduces significant changes to welfare, costing around £9 billion a year by 2029–30. These include:

• Reversing the previous cuts to winter fuel payments

• Reversing cuts to health-related benefits

• Removing the two-child limit in Universal Credit

According to the OBR, this supports around 560,000 families, increasing average benefits for those affected.

Full welfare analysis is available directly from the OBR report linked above.

Public Spending Pressures

Public spending rises in a number of areas that continue to face strain, including:

• NHS and health capacity

• Local authorities, particularly around SEND provision

• Asylum system costs

• Digital ID card rollout

• Renewables obligation measures

One of the most notable pressures highlighted by the OBR is the £14bn accumulated SEND deficit within local government budgets.

Borrowing and Debt

Borrowing remains elevated:

• Around 4.5% of GDP this year

• Falling to 1.9% by 2030–31

Debt peaks at 97% of GDP in 2028–29 and reduces only slightly afterwards. The OBR notes that the UK remains more exposed than many other advanced economies due to higher borrowing costs, welfare pressures and weak productivity growth.

Why This Budget Matters

This Autumn Budget 2025 summary shows a landscape shaped by rising taxes, sustained inflation and slower economic growth. While certain support measures ease pressure for some households, the overall direction reflects the financial constraints the UK continues to face.

For those wanting to think longer-term about decisions and planning, our story and approach are available here without any obligation:
Our Story

You can also read more articles and updates in our news section: News and Resources