The Autumn Budget has just been announced by Rachel Reeves, the first female Chancellor. It is Labour’s first Budget in 14 years and the first Budget to ever be delivered by a woman. Here’s what it means for you.
“Girls and young women everywhere, I say, let there be no ceiling on your ambition, your hopes, and your dreams,” said Chancellor of the Exchequer Rachel Reeves at this morning’s Autumn Budget announcement.
Reeves opened the Autumn Statement to the House of Commons this morning by telling MPs that the new Government plans “To restore stability to our economy”. The official Autumn Budget announcement ran for just over an hour and Reeves called out key areas such as Housing, Education, and—of course—tax.
40bn in tax hikes, a fuel duty freeze, and changes to Carers’ allowance were all outlined in today’s Budget announcement, but what does all this mean for the average Brit? Here’s how the first Labour Budget will impact you…
National Insurance
“Change must be felt — more pounds in people’s pockets,” said Reeves in her opening gambit. It was a theme that would be repeated throughout the announcement, which ran for over an hour.
Reeves stated her intention to “Keep every single commitment that we made on tax in our manifesto.” Put simply, this means there will be no increase to VAT, no increase to National Insurance, and no increase to Income Tax, for employees at least.
Labour is “Asking businesses to contribute more” by increasing employer’s contributions from 13.8% to 15% in April 2025. This will raise 25bn annually.
Tax
Capital Gains Tax
The UK still has the lowest Capital Gains Tax in any European G7 country. Labour intends to increase the lower rate of Capital Gains Tax and maintain the rate of Capital Gains Tax on property. The UK still has the lowest Capital Gains Tax in any European G7 country.
Inheritance Tax
Only 6% of estates will pay Inheritance Tax, which has been extended for an additional two years beyond the previous Government’s promise to maintain the current Inheritance Tax until 2028.
Reeves promised to “close the loophole” by bringing inherited pensions into Inheritance Tax.
Carers' Allowance
Reeves announced the largest Carers Allowance increase since the allowance was first introduced in 1976. The weekly earnings limit will increase to the equivalent of 16 hours at the National Living Wage. This means a Carer can earn up to 10k without this affecting their Allowance.
We are continuing to update this story
English (US) ·