A Guide to the Autumn Budget 2025
Caz Blake-Symes • November 28, 2025
Article adapted from our November newsletter
Chancellor Rachel Reeves has delivered her 2025 Autumn Budget, the first major fiscal statement of the year for this Labour government. We wanted to provide you with an overview of the most notable announcements made in yesterday’s speech.
Personal taxation
- National Insurance (NI) and income tax thresholds will remain frozen for an additional three years beyond 2028, gradually pushing more people into higher tax brackets.
- The annual cash limit for under-65s using cash ISAs will be restricted to £12,000. The remainder of the £20,000 allowance must be used for investment products.
- Basic and higher income tax rates applied to property, savings and dividend income will rise by two percentage points.
Wages, benefits and pensions
- From April, the cap preventing households on Universal Credit or Child Tax Credit from receiving support for a third or subsequent child will be removed.
- The statutory minimum wage for workers aged 21 and over will rise by 4.1%, from £12.21 to £12.71 an hour.
- The minimum wage for those aged 18 to 20 will increase by 8.5%, from £10 to £10.85 an hour, as part of a move toward a single adult rate.
- The basic state pension and the newer state pension will increase by 4.8% in April, exceeding current inflation, in line with the triple-lock commitment.
- From 2029, employees using salary-sacrifice pension schemes will start paying NI on contributions above £2,000 a year.
- The Help to Save scheme, which offers bonuses to eligible Universal Credit claimants, will be extended and expanded beyond 2027.
Housing and property
- Homes in England valued at more than £2 million will be subject to a council tax surcharge of between £2,500 and £7,500, linked to a revaluation of properties in bands F, G and H.
Transport
- Fuel duty will remain frozen for five months after April, then increase gradually from September 2026.
- A mileage-based tax for electric and plug-in hybrid vehicles will be introduced from 2028.
- Regulated rail fares in England will be frozen next year, marking the first full freeze since 1996 (although some previous rises were below inflation).
- Premium car models will no longer be available through the Motability scheme, which provides cheaper vehicle leases to eligible disability-benefit recipients.
Drinking and smoking
- From 2028, the tax on sugary drinks will be extended to include pre-packaged milkshakes and lattes, reversing the exemption put in place when the levy was first introduced in 2018.
UK growth, inflation and public finances
- The Office for Budget Responsibility expects the UK economy to grow by 1.5% this year, up from its 1% forecast in March.
- Inflation is forecast to average 3.5% this year, fall to 2.5% next year and return to the 2% target in 2027.
Other measures
- English regional mayors will gain the power to introduce a tax on overnight accommodation in hotels and holiday lets, similar to existing or proposed measures in Scotland and Wales.
- The NHS prescription charge in England will remain at £9.90 for another year; prescriptions continue to be free in Scotland, Wales and Northern Ireland.
How to Contact Us
Russell Green will personally deal with your enquiry
Tel 01934 442023
Email russell@westonmortgagesonline.com
Complete a form via our website www.westonmortgagesonline.com
Our initial mortgage consultation is free and with no obligation; should you proceed to an application, there will usually be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances, but will range from £ 290 to £490, and this will be discussed and agreed with you at the earliest opportunity.
Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
Source
BBC (2025). Budget 2025 summary: Key points from Rachel Reeves’s speech. BBC News. Available at: https://www.bbc.co.uk/news/articles/cj4w44w42j5o [Accessed 26 Nov. 2025].
All the information in this article is correct as of the publish date 27st November 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute
Summer can be a difficult time to read the property market.
Families go away, house hunting competes with holidays and good weather, and some of the most reliable housing statistics arrive several weeks after the activity they measure.
Navigating the mortgage market can often feel like trying to solve a complex puzzle with missing pieces. Whether you are buying your very first flat, upgrading to your forever family home, or managing a remortgage, the financial jargon and mountain of legal paperwork can easily get overwhelming.
Stepping onto the property ladder is one of the most exciting milestones in life. However, between understanding deposits, navigating affordability checks, and choosing from thousands of deals, the process can quickly feel overwhelming.
A mortgage can run for decades, but a household’s income can change overnight. Illness, a serious diagnosis, redundancy and death create different financial problems, and no single insurance policy necessarily covers them all.
Most homeowners understand the need to insure the building they live in. Buildings insurance
More than five million households are expected to face higher mortgage repayments by the end of 2028, according to the Bank of England. For homeowners approaching the end of a fixed deal, starting early could provide more time, more options and greater certainty.
We are delighted to share that Russell Green has completed the Green Finance Institute's Certificate in Financing Greener Homes.
Delivered by the Green Finance Institute in partnership with Lloyds Banking Group and accredited by LIBF, the Certificate gives Russell the technical knowledge and market insight to confiden
If your current fixed-rate mortgage is set to end in the next six months, you might think you have plenty of time. Historically, many homeowners waited until their deal was just weeks from expiring before looking for a new one.
There have been encouraging signs in the mortgage market recently, with a number of lenders reducing selected mortgage rates.
When the UK experiences a heatwave, most of the attention understandably turns to health, hydration and staying cool. That should always come first. Hot weather can affect everyone, particularly older people, young children, pregnant women and those with underlying health conditions
If you have been keeping an eye on the UK housing market lately, you have probably noticed that the summer property season is playing out a little differently than usual. For anyone looking to buy, sell, or remortgage right now, the landscape is a mix of fresh opportunities and lingering economic calculations. The big headline dominating the market is the Bank of England’s decision to maintain the base interest rate at 3.75% . While a hold was widely anticipated by the City, the Monetary Policy Committee (MPC) split 7-2, highlighting that the battle against inflation isn’t quite a closed chapter yet. For everyday homeowners and buyers, this prolonged "wait-and-see" approach from the central bank creates a unique set of circumstances — particularly here in the South West. The South West Focus: A Buyer’s Oasis or a Seller’s Reality Check? Nationally, June has brought a historic shift. Average asking prices across the UK dipped by 0.6%, marking the sharpest June decline in 14 years. Usually, early summer brings modest price growth, but a surge of available properties has tipped the scales, handing substantial bargaining power back to buyers. In the South West , this regional dynamic is even more pronounced. · The Supply Surge: The region is seeing a high volume of homes on the market. Part of this stems from standard seasonal moves, while another portion is driven by landlords adjusting to the recently implemented Renters' Rights Act by listing properties. · Price Sensitivities: Because the South West historically commands higher average property prices than northern regions, it is naturally more sensitive to elevated borrowing costs. Property experts Savills recently adjusted their 2026 regional outlook, predicting a modest price adjustment of around -2.5% across the South West before a steady, longer-term recovery takes place. · The Reality of Moving: Interestingly, transaction data shows that needs-based buyers (those relocating for family, schools, or work) are still driving healthy activity, notably in hot spots like Plymouth and parts of Devon. However, patience is required: recent data reveals that the South West experiences a slightly higher rate of property fall-throughs (around 65%) compared to the national average, as chains take a bit longer to crystallise under tight lending conditions. What Does the 3.75% Rate Hold Mean for Your Pocket? A rate freeze doesn't mean mortgage rates are completely frozen. In fact, fixed-rate mortgages are largely influenced by "swap rates" (the wholesale cost of borrowing between banks based on future economic forecasts). Because inflation has shown signs of stabilising at 2.8%, swap markets have calmed. We are currently seeing a gentle, steady reduction in fixed-rate deals rather than dramatic drops. The average two-year fixed rate has gently nudged down to around 5.07% from the peaks of last month. Lenders are hungry for business, giving rise to quiet competition, but nobody expects a return to the rock-bottom rates of the last decade. Here is how the current market translates to your specific goals: First-Time Buyers The combination of softer asking prices and a surge in property choice means you have more leverage than first-time buyers have enjoyed in years. Sellers are increasingly treating their asking prices as an "aspirational starting point" rather than a firm baseline. If you have your deposit ready, you have a brilliant window to negotiate. Existing Homeowners Looking to Move If you are upsizing or downsizing within the South West, the key to success right now is pricing realism. If you price your current home competitively to secure a swift sale, you will be in a prime position to negotiate a great discount on your onward purchase. Those Reaching the End of a Fixed Rate If your current mortgage deal expires in the next six months, the worst thing you can do is wait on the sidelines hoping for a massive interest rate cut that may not materialise. Forecasters suggest the base rate will likely remain steady for the near future, with any potential cuts pushed well into next year. Securing a rate early is a smart way to lock in certainty. Take Your Next Step with Confidence Whether you are trying to map out a first-time purchase in Somerset, remortgage a family home in Bristol, or navigate a chain down in Devon, local expertise matters more than ever when the economic tides are shifting. Regardless of your current situation, please get in contact with Russell Green; he will be delighted to help you. How to Contact Us Russell Green will personally deal with your enquiry. T el 01934 442023 Email russell@westonmortgagesonline.com Complete a form via our website www.westonmortgagesonline.com Our initial mortgage consultation is free and with no obligation; should you proceed to an application, there will usually be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances, but will range from £ 290 to £490, and this will be discussed and agreed with you at the earliest opportunity. Your home/property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.