How the Autumn Budget could affect your finances
From tax rises to pension reforms, the chancellor's decision may have a significant impact

The Autumn Budget is approaching and Chancellor Rachel Reeves has warned of difficult decisions on tax, spending and pensions.
Reeves used one of her first parliamentary speeches as chancellor in July to highlight a "£22 billion hole in public finances" inherited from the Tory government before Labour came to power at the general election.
To plug this shortfall, Prime Minister Keir Starmer has already warned that those with the broadest shoulders "should bear the heavier burden", said MoneyWeek, "suggesting that we could see tax hikes in the Budget".
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
There have already been some cuts, with winter fuel payments limited to those claiming pension credit, but reported The Times Money Mentor, "some big surprises" could also be enacted.
Tax rises
Starmer has warned Britain to "prepare for tax rises", said ThisIsMoney, but he has ruled out raising income tax, national insurance and VAT, "making it harder to balance Britain's books".
This means "rumours are rife" that there could be changes to capital gains tax (CGT) or pension tax relief, said The Telegraph, which the government has "so far refused to rule out".
Increasing CGT rates – the amount of tax you pay when selling an investment or property – would "chime with Labour’s mission to make the rich pay more", reported Morningstar.
One possibility is bringing CGT rates in line with higher income tax charges, said Charles Stanley. However, such a plan may backfire if "more people decide to sit on their hands rather than sell".
Inheritance tax is one of the taxes "most likely to be changed", said Sky News. It is currently charged at 40% on the value of any assets above £325,000 when someone dies.
The rate could be increased, the news broadcaster added, or the threshold "lowered to raise money".
Reeves could also change the "various rules" around gifts and exemptions for inheritance planning, said Fidelity, which could be sold as a "tidying up of what can seem complicated rules".
Pension reform
The government has already launched a pension review looking at "scaling up" workplace schemes, said The Times Money Mentor.
But the Budget may go further, added the financial website, with changes to pension tax relief or the 25% tax-free lump sum that can be taken from retirement pots.
Currently, higher rate taxpayers get 40% tax relief on pension contributions but halving this to the basic 20% rate could raise a "tantalising sum" of up to £15 billion, according to the Institute for Fiscal Studies.
This would, however, result in a "less coherent tax system", reported the think tank, "with a strong disincentive to contribute".
Rumours of changes to the 25% tax-free lump sum that can be withdrawn from a pension have already caused an increase in people contacting financial planners to help access their money, said the i newspaper, "amid worries of a potential tax raid".
The chancellor may consider an "anomaly" in the inheritance tax system that lets people inherit a pension tax-free, said consultancy LCP, but it is expected to raise "relatively little revenue".
Benefit changes
Labour has promised "no more austerity", said the Daily Mirror, but has already announced changes to winter fuel payments and scrapped plans to cap social care costs. The government is also "yet to rule out" previous Tory government proposals to replace the personal independence payments benefit with vouchers and one-off grants.
Reeves is understood to be "eyeing up" changes to the welfare budget by helping more people get back to work, reported the i Paper.
This would "lower the bill" for income-related sickness benefits and the unemployment element of universal credit, added the newspaper's website.
But this must not be used as an "excuse for slashing vital financial support" for seriously ill and disabled people, Ayla Ozmen, director of policy and campaigns at anti-poverty charity Z2K, told the Big Issue, especially when the evidence shows that "such cuts do nothing to help people enter work".
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Marc Shoffman is an NCTJ-qualified award-winning freelance journalist, specialising in business, property and personal finance. He has a BA in multimedia journalism from Bournemouth University and a master’s in financial journalism from City University, London. His career began at FT Business trade publication Financial Adviser, during the 2008 banking crash. In 2013, he moved to MailOnline’s personal finance section This is Money, where he covered topics ranging from mortgages and pensions to investments and even a bit of Bitcoin. Since going freelance in 2016, his work has appeared in MoneyWeek, The Times, The Mail on Sunday and on the i news site.
-
Today's political cartoons - March 30, 2025
Cartoons Sunday's cartoons - strawberry fields forever, secret files, and more
By The Week US Published
-
5 hilariously sparse cartoons about further DOGE cuts
Cartoons Artists take on free audits, report cards, and more
By The Week US Published
-
Following the Tea Horse Road in China
The Week Recommends This network of roads and trails served as vital trading routes
By The Week UK Published
-
How to pay off student loans
The explainer Don't just settle for the default repayment plan
By Becca Stanek, The Week US Published
-
Do student loans affect a credit score?
the explainer Repaying loans on time will strengthen your credit — but paying late will hurt it
By Becca Stanek, The Week US Published
-
Do I qualify for student loan forgiveness?
The Explainer There are a number of different pathways to qualification, though each requires strict criteria to be met
By Becca Stanek, The Week US Published
-
Should I consolidate my student loans?
the explainer Consolidate your loans and you will have just one monthly payment to keep track of — but your interest rate may increase
By Becca Stanek, The Week US Published
-
What's a student loan and how does it work?
The Explainer These loans can cover the cost of tuition, housing and textbooks — but they must eventually be repaid, plus interest
By Becca Stanek, The Week US Published
-
How to get student loan forgiveness
the explainer Four options for paying back (less of!) your federal student loans
By Becca Stanek, The Week US Published
-
ABLE accounts: how they work and who can benefit from them
the explainer These state-administered accounts are available to people with disabilities
By Becca Stanek, The Week US Published
-
5 reasons to file your taxes sooner than later
the explainer Many experts recommend filing well ahead of the annual April deadline
By Becca Stanek, The Week US Published