Budget 2025: What Really Happened
In the weeks leading up to the 2025 Budget Statement,
the headlines were full of predictions. Would taxes rise? Would capital gains or pensions take a hit? Speculation was everywhere.
Despite all the noise, the Chancellor announced no changes to capital gains tax or VAT, and no major pension shake-up. The sweeping reforms many feared simply didn’t happen.
Instead, we saw smaller, targeted tweaks designed to raise revenue gradually. Nothing here should force anyone into knee-jerk decisions.
Here’s what stood out:
Tax thresholds extended
High-value property council tax (the so-called “mansion tax”)
Cash ISA allowance reduced
Salary sacrifice pension cap
Dividend tax adjustments
Property and savings income tax changes
Electric vehicle road pricing
On the brighter side, the state pension will rise by 4.8% in April, matching wage growth. Rail fares in England are frozen until March 2027, and fuel duty stays put until September 2026. These won’t transform anyone’s financial plan, but they’re worth noting.
Looking back, much of the pre-Budget chatter missed the mark. Anyone who made big changes based on rumoured CGT hikes or pension overhauls might now be regretting it. This is why we always say: facts beat speculation (almost) every time.
The changes announced are manageable and phased in over time. That gives everyone space to plan thoughtfully—not react hastily.
If you’re wondering what this means for your own finances, the key takeaway is simple: don’t panic, plan. Most of these changes will roll out gradually, giving time to adjust. This gives us room to plan thoughtfully, not react quickly.
As always, each client’s situation is unique. Some of these adjustments may impact you more than others.
As ever the Budget publications contained a wide range of detailed proposals and much to digest. Our Budget Summary highlights the key aspects that may affect you.