About our 2025 UK Budget news
Latest news on 2025 UK Budget, covering tax changes, spending plans, fiscal policy, NHS funding, and announcements from the Chancellor and HM Treasury.
The UK Budget represents the government's annual financial blueprint, setting out taxation and spending priorities for the year ahead. With Chancellor Rachel Reeves at the helm since Labour's election victory, the budget process has taken centre stage in national debate. The Autumn Budget typically occurs in November, with a Spring Statement providing updates in March.
The upcoming Autumn Budget 2025, scheduled for 26 November, arrives amid significant fiscal challenges. Reeves faces a substantial shortfall estimated between £20 billion and £50 billion, driven by higher debt-servicing costs and increased spending commitments. The Chancellor has pledged to maintain fiscal rules requiring day-to-day spending to be funded through taxation rather than borrowing, whilst ensuring public debt falls as a share of GDP by 2029-30. Speculation centres on potential reforms to capital gains tax, inheritance tax, council tax, and fuel duty.
Economic pressures shape the budget landscape considerably. Inflation remains stubbornly high at around 3.8%, the highest amongst G7 nations, affecting household costs from energy bills to food prices. The Bank of England has maintained interest rates at 4%, with borrowing costs reaching multi-decade highs. Despite these headwinds, the UK is forecast to be the second-fastest growing G7 economy in 2025, creating a complex balancing act between growth ambitions and fiscal discipline.
The Spring Statement 2025 and Spending Review 2025 laid important groundwork, announcing increased defence spending towards 2.5% of GDP and significant investment in the NHS, education, and housing. The government committed to building 1.5 million new homes and reducing hospital waiting lists. However, these ambitions require substantial funding, with the Spending Review setting departmental budgets showing real-terms administration cuts of 11% by 2028-29.
The NewsNow feed on the 2025 UK Budget provides comprehensive, continuously updated coverage from reliable sources, ensuring you stay informed about every development affecting your finances and the nation's economic future.