Chancellor Rachel Reeves has confirmed that this year’s Autumn Budget will take place on 26th November, almost a month later than 2024's date of 30th October.
In a speech this morning, Reeves said: “Britain’s economy isn’t broken, but I do know that it’s not working well enough for working people. Bills are too high and you feel that you're putting more in, but you're getting out. And that has to change.
“Britain's got huge potential – we've got world-leading brands, dynamic industries, brilliant universities, a skilled workforce. We are tearing up our planning rules, so we can actually build the 1.5 million homes that families in Britain need.
"But there are still challenges. The cost of living pressures, I know, are still very real. We need to bring inflation and borrowing costs down, and we do that by keeping a tight grip on day-to-day spending and by enforcing my non-negotiable fiscal rules."
After the speech, it is expected that Labour will honour its manifesto commitment not to raise income tax, VAT or national insurance for employees.
The latest announcement comes amid a series of reports on the government’s wider property market measures expected in this year’s Budget.
The Treasury is reportedly considering a new tax on landlords, with rental income potentially being brought into the scope of national insurance in the upcoming Autumn Budget.
The move would see the national insurance system – which currently does not cover property-related earnings – extended as part of efforts to plug an estimated £40bn shortfall in the nation’s finances.
Labour insiders, cited by The Times, described rental income as “a significant potential extra source of funds,” portraying landlords as benefiting from “unearned income.”
At present, national insurance is not levied on income from property, savings, or pensions. However, applying the 8% charge – which usually falls on employee wages – to rental earnings could raise around £2bn.
A landlord earning between £50,000 and £70,000 from property could face an extra £1,000 in tax annually.
Earlier this month, Treasury insiders revealed plans for a new levy on property sales above £500,000, as part of a broader shake-up of stamp duty and council tax.
Sources said that senior ministers have instructed officials to explore how a “proportional” property tax might work and to model its impact.
Initial work is focused on the creation of a national property tax that would replace stamp duty on owner-occupied homes. In the longer term, officials are also examining whether this system could pave the way for a local property tax to replace council tax, providing fresh revenues for struggling councils. It has also been suggested that the new tax could be paid by the seller, rather than the buyer.
Jason Hollands, managing director at wealth management firm Evelyn Partners, commented: "Today’s announcement of a 26 November date for Chancellor Rachel Reeves’ second Budget came as a bit of surprise, arriving amid rising Gilt yields, rife speculation over tax rises, and the Prime Minister’s moves to bolster his own team of economic advisers.
"It is certainly a very late date in the calendar year for the Budget, though not so late in the context of a fiscal year. Most tax changes typically kick in at the start of the next tax year following a Budget, though unusually last year saw an immediate hike in capital gains tax on Budget day.
"While November Budgets and fiscal events are not unusual, you have to go as far back as the mid-1990s to find ones as late as this. Given the widespread anticipation of looming tax rises, the Government will no doubt have wanted to avoid the PR own-goal of holding another end of October statement, inviting “Halloween”-related headlines.
"Cynics will assume that holding such a hotly anticipated event a month later than last year is a sign that the Chancellor needs more time to work out what measures are required and confirmation that she isn’t wholly in control of its contents. It seems clear from the beefing up of economic advisers next door at No. 10 this week that the Prime Minister will want to be much more involved in shaping decisions this time round. Another month will therefore extend the period to thrash things out between Rachel Reeves’ team and those advising Keir Starmer. He will surely want to avoid the kind of u-turns we saw on the winter fuel allowance and welfare reform when he faced a back-bench revolt.
"It does however also mean another month of uncertainty, speculation, and kite-flying about where the Chancellor will make her moves in search of tax receipts. That is unnerving for people trying to make important financial decisions.
"The Government has a very tough job ahead of it to restore confidence and it is dealing with the headwinds of rising inflation, rising bond yields and the drag impact on consumers and businesses of a painfully high tax burden."
David Brooks, head of policy at independent consultancy Broadstone, agreed: “Looks like we’ll have a late budget this year as the Chancellor gives herself time to come up with a plan to get the economy firing and reduce government debt.
“Even though Torsten Bell is part of the drafting team, it still seems unlikely that pensions will be able to give the quick wins needed in November’s Budget. However, this government has got form already in making decisions for the longer term, for example, pushing through pension and investment reforms.
“To this end, the rumours around tax-free cash amendments feel too reactionary to be on the drawing board. However, the long-proposed pensions tax relief changes look likely to be an attractive fiscal lever for the Chancellor.
“This would need to come with a lengthy technical consultation but changing the bonus for saving into a pension to a flat rate could save the government some money and also boost pension savings for the lower rate taxpayers.
“Of course, this would drive concerns around intergenerational unfairness but calls to introduce NI contributions - of some level - for current pensioners could go some way to balancing this by asking wealthier pensioners to shoulder some of the country’s current burden, especially on the NHS.
“However, as always, we won’t know anything for certain until the day, so it’s best to be wary of speculation and avoid making any life changing decisions on rumours – we’ve got a long run up this year. Good luck!”
Paul Barham, tax partner at Forvis Mazars, said: “Despite all the rumours, the government has limited options in the Autumn Budget. Unable to cut spending and having ruled out hikes to income tax and VAT, other increases are almost certain.
“Tax by stealth is more likely than any largescale overhaul, like rumoured council tax changes. We can expect to see a continued freeze on income tax thresholds, a subtle but effective way to increase revenue as wage inflation pushes more people into higher tax brackets. The government may also close tax advantage schemes that have so far avoided attention, such as non-AIM Business Relief investment schemes.
“Loophole closing will also be in the government’s sights with potential changes to Capital Gains Tax (CGT) exit charge on individual assets. Designed to prevent people from avoiding tax on asset gains by moving abroad, it could be introduced on unrealised gains when an individual or company ceases to be a UK resident. Such is the case already on trusts and business assets.
“Finally, look out for tighter rules around inheritance tax (IHT). This could include extending the "seven-year clock" for gifts to become IHT-exempt or capping the total amount of tax-free gifts over a lifetime. While the exact details are still unknown, the overall direction is clear: tax rises are coming and will impact financial tax planning.”
Jonathan Stinton, head of mortgage relations at Coventry Building Society, added: “This isn’t a problem for sales going through right now. But as we get closer to 26th November, how many buyers are going to be tempted to drag their feet a little, just in case stamp duty is abolished and they save thousands of pounds overnight? Ultimately, if you’re in the middle of buying or selling a property now, this speculation could add weeks onto the process and put some sales and some chains at risk.
“Sellers – particularly those with more expensive homes to sell – may start to feel the urgency to complete the transaction before they find themselves on the sharp end of a rumoured new property tax. When you add in the potential of Capital Gains Tax coming into play as well, you’ve got another strong incentive for some sellers to beat this hypothetical deadline.
“Until these rumours are either quashed or implemented, it’s going to be a frustrating time for people who just want to move home. Ten weeks is a long time to wait to find out if these changes are real. When tax reforms of this scale come in, there are always winners and losers – the Treasury can’t expect anyone to carry on as usual when thousands of pounds could be at stake.
“We’ve been calling for reform of property tax for a long time, and any significant change will need time to settle in. But drip feeding policy ideas months ahead of time is unhelpful for everyone.
“What the housing market needs most right now is clarity. There are very real consequences of all this speculation – it leaves people guessing, and the housing market doesn’t really thrive on guesswork. Treasury should either quash the rumours or set out the detail, so buyers, sellers and the market know what to prepare for.”
