Rumours and predictions for what could be in the 2025 Autumn Budget for businesses

The Chancellor is under pressure to boost economic growth and balance public finances. She set herself fiscal rules, but the National Institute of Economic and Social Research has warned that Ms Reeves will miss her 'stability rule' for 2029-30 by £41.2bn. 

“Substantial adjustments in the Autumn Budget will be needed if the Chancellor is to remain compliant with her fiscal rules,” it said. 

Last Autumn’s Budget included £40 billion in tax rises. What could be in the 2025 speech? 

Will there be tax rises in the 2025 Budget? 

The Government has repeatedly said it will stick to its General Election manifesto commitment of not increasing income tax, National Insurance and VAT for “working people”, but many experts predict that the Chancellor will be forced to announce some tax rises.  

"Of course, we're looking at tax and spending as well," Ms Reeves told Sky News in an interview on 15th October.  

“She has never previously publicly confirmed tax rises are on the cards in the budget, going out of her way to avoid mentioning tax in interviews two weeks ago,” the broadcaster said.  

Will the freeze on tax thresholds be extended?

Various personal tax thresholds are currently frozen until April 2028, but experts have predicted Ms Reeves could extend the freeze to raise billions of pounds more in revenue.  

The following are currently frozen: income tax personal allowance and higher rate threshold, and National Insurance upper earnings limit and upper profits limit. 

National Insurance on rental income 

It has been reported that the Chancellor is considering expanding National Insurance to include rental income and raise £2 billion for the Treasury.  

According to The Times: “Labour insiders said that property income was ‘a significant potential extra source of funds’ and landlords were seen as a way of targeting “unearned revenue’.” 

Will there be changes to Capital Gains Tax?

With pressure on the Chancellor to increase taxes on the wealthiest people, Ms Reeves may announce more changes to Capital Gains Tax following the increases announced in the 2024 Autumn Budget. 

Measures could include raising the CGT rates or applying rates to specific assets such as second properties. 

Inheritance tax 

The Guardian reported that the Government is considering making changes to inheritance tax (IHT) by tightening rules on the gifting of money and assets. 

Under current IHT rules, gifts made seven years before someone dies are not subject to IHT, and those given three to seven years before death are taxed on a sliding scale. 

Will there be changes to ISAs?

The 2025 Spring Statement said: “The Government is looking at options for reforms to Individual Savings Accounts (ISAs) that get the balance right between cash and equities to earn better returns for savers, boost the culture of retail investment, and support the growth mission.” 

This has sparked rumours that she will announce in the Budget a cut in the tax-free ISA limit from £20,000 to £10,000. 

Will the VAT threshold change?

There have been predictions that Ms Reeves may change the VAT threshold, which is currently £90,000.  

A 2023 report by the OBR said thousands of businesses cap their turnover to avoid reaching the threshold, and some experts have said she could increase the threshold in the Budget to avoid this “cliff edge”. The Federation of Small Businesses has previously called for it to rise to £100,000.  

Other reports have said Ms Reeves is considering slashing the threshold to £30,000, which would bring thousands more small businesses and sole traders into the VAT bracket. This was proposed by the Resolution Foundation in 2023, but IPSE, which has called for a threshold rise to £120,000, said lowering the threshold “would burden small businesses with extra tax and admin at the worst possible time”. 

How will business rates change?

The Government announced in the 2024 Autumn Budget its intention to introduce permanently lower business rates for retail, hospitality and leisure (RHL) properties in England with rateable values (RVs) under £500,000 from April 2026. Those rates will be confirmed in the 2025 Autumn Budget. 

The Government also said it will introduce two new, lower multipliers for RHL properties with RVs below £500,000, funded by a new, high value multiplier for properties with an RV of £500,000 or above. These new rates will be set at Autumn Budget 2025. 

On 11th September, the Treasury published ‘transforming business rates: interim report’ which summarises the findings of engagement with interested parties and the Government’s response following the ‘transforming business rates’ discussion paper in October 2024.  

The Government said it will provide a further update on business rates in the 2025 Budget “taking into account the 2026 revaluation outcomes, local government funding, and the economic and fiscal context”. 

Raising the trading allowance 

The trading allowance is the amount self-employed people can earn before paying tax. It is currently £1,000 and has been at that rate since 2017.  

Online marketplaces and businesses groups including eBay, Vinted, Federation of Small Businesses and techUK have called for the allowance to increase to £3,000.  

Extending ‘full expensing’ 

The Times reports that Ms Reeves is considering extending “full expensing”, which allows companies to claim 100% capital allowances on qualifying plant and machinery investments, to investment in transactions of intellectual property, such as when companies buy patents, software or licences from other companies. 

Extending Enterprise Management Incentive 

In the same report, The Times said Ms Reeves is looking into expanding the eligibility of the Enterprise Management Incentive (EMI) which allows businesses to give share options to employees.  

EMI currently applies to businesses with assets of £30 million or less and fewer than 250 full-time employees.  

Sign up for our 2025 Autumn Budget summary 

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Last updated 17 Oct 2025 | First published 17 Oct 2025

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