UK budget: financial services sector reaction

The Chancellor’s downgrade to the economic forecasts was far smaller than anticipated-just one of the budget surprises image credit: Fred Duval/shutterstock

It is, says the government, a budget to support working households and UK businesses. Critics will argue that it represents a £26bn rise in taxes and more election promises broken.

As much of the budget had been leaked, industry commentators did at least have time to prepare their ‘instant response’ comments well in advance.

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Comments, below, from over 70 industry observers range from the improbably positive to what to some may appear to represent exaggerated outrage.

In the first camp for example, James Neville, CEO of Yaspa, asserts: “Today’s Budget sends a clear and important message to the UK’s entrepreneurs like myself. The government is signalling loud and clear that if you build here, Britain will back you.”

On the other hand, Nimesh Shah, CEO of Blick Rothenberg summarises the measures as “the most damaging Budget in living memory”. He has an ally in the always quotable Nigel Green, the CEO of deVere Group. Always good for a soundbite, Green dismisses the budget as “a masterclass in disincentivising saving and investing.”

Special mention is owed to Hal Cook of Hargreaves Lansdown, for a succinct summary of why gilts really do matter.

Comments published here are ordered by alphabetical order of the firm responding to the budget.

Ben Cousens, Co-Founder & CEO, Antidote

We are happy to hear that there will be an expansion of entrepreneurial investment schemes and a consultation on how to attract more entrepreneurs. The UK still has everything it needs to lead the next wave of global innovation: world-class talent, deep capital markets, and a thriving engineering community. What we’ve lacked is momentum and belief.

This Budget was an opportunity to change the narrative, to give founders a reason to build here, scale here, and stay here. If we create the right environment for ambitious entrepreneurs to experiment and grow, the UK can reclaim its position as the best place in the world to build transformative technology. It starts with backing the builders.  We look forward to the future, with an optimistic belief in the potential of building in Britain. The government could go further here, tactically focusing on industries set to dominate growth in the 21st Century like AI, FinTech and Bitcoin. There is precedent for such tactical decision-making, evidenced in how UK government support for the video games and film industries has unlocked growth and employment in both sectors.

Daniel Austin, CEO and co-founder at ASK Partners

Mansion tax

The Mansion Tax announced in today’s Budget will likely soften demand for higher-end homes, especially those near the £2m threshold where the impact is greatest. While the super-prime market may absorb the charge, the wider upper tier can expect renewed price pressure and slower growth. We may see a brief pre-implementation rush, but just as many owners could delay selling to avoid the levy, reducing turnover and constraining supply. The burden will fall hardest on asset-rich, cash-poor households in high-value areas such as London.

“It is disappointing that stamp duty reform was overlooked. As one of the biggest barriers to market mobility, leaving it untouched will continue to create friction in an already subdued market. The OBR’s downgraded growth forecasts, as a result of the budget, prove that supporting transactions should have been central to today’s package.

Infrastructure and investor sentiment

On a more positive note, renewed funding for the Lower Thames Crossing signals intent to push ahead with major infrastructure. Such projects typically bolster confidence among developers, investors and buyers. Over time, improved connectivity should lift demand, and eventually values, across parts of east and south-east London.

Capital flows and residential investment

Rather than driving capital out, the Budget is more likely to redirect it within UK housing. Foreign, institutional and private-credit investors are expected to continue favouring mid-market, income-led residential assets, build-to-rent, PBSA, single-family rental, affordable and suburban schemes, while relying more heavily on credit strategies as banks remain cautious.

ISA allowance reduction

The cut to ISA allowances is another unwelcome development. Cash ISAs are central to how aspiring buyers save, and a lower limit makes deposit-building even harder. It may also reduce low-cost funding for building societies and smaller lenders, tightening mortgage availability. At a time when the market needs more mobility and higher transaction volumes, this risks suppressing demand, delaying first-time buyer activity and adding friction to an already subdued market.

Annette Spencer, Chief Executive of the Association of Corporate Treasurers

What treasurers and their businesses say they need from government is clarity, certainty, and consistency – particularly in fiscal policy, regulation and access to capital. These preconditions are essential for long-term investment, effective risk management and confident participation in UK financial markets. In last year’s Budget, business confidence was shaken by the stark disconnect between the Government’s positive prior rhetoric and the actuality of the Chancellor’s decision to increase Employer National Insurance Contributions. So, a repeat shock to business this year would have been very damaging.

The Chancellor has largely avoided springing major surprises on businesses this year. It will take time to see whether the impact of extending the freeze on personal income tax thresholds and introducing some new taxes on property and salary sacrifice pension contributions (from 2029) will ultimately dent consumer confidence, and by extension impact the business sector in the medium term.

Derek Ryan, Managing Director at Bibby Financial Services

Budget lets down SMEs

Today’s silence on specific SME support is hugely disappointing. With 44% of SMEs having delayed investment decisions until after the Budget, the absence of meaningful and targeted measures today will further hold back capital expenditure.

This Budget offered little to ease the pressures SMEs are facing day in, day out. Inflation and rising operating costs remain the most pressing challenge for two-thirds of SMEs, and without intervention to ease this burden, the Government risks stalling their ability to invest in jobs, innovation, and growth. 

SMEs are the beating heart of the UK economy, and today they needed a signal of confidence. Instead, while this Budget stopped short of harming SMEs, it also stopped short of helping them. For a Government that promised to champion small business growth in its Plan for Change, this is a missed opportunity.

Nimesh Shah, CEO, Blick Rothenberg

This is the most damaging Budget in living memory

Even before Rachel Reeves stood up to deliver her Budget 2025 speech, this is one of the most damaging Budget statements in living memory and will leave a lasting impact for a generation.

The 2% increase to dividend tax rates, property and savings (raising over £2bn) presumably breaks Labour’s manifesto pledge not to increase Income Tax.

The reduction in the cash ISA limit to £12,000 will cost a higher rate taxpayer over £140 in income tax (assuming interest rate of 4.5% and no personal savings allowance).

The ISA regime has just been made (even more) unnecessarily complicated by having a different regime for over-65s.  I understand the logic but this is making a mess of ISAs.

The changes to salary sacrifice pensions from 2029 are another damaging blow to business after last year’s employer’s NIC increase.  This will be inflationary and lead to further job losses.

It was a certainty that personal tax allowances and thresholds would be frozen in today’s Budget.  I wasn’t expecting it would be for another 3 years and would drag almost 1 million people into higher rate (40%) tax.

Changes to dividends, property income and savings introduces new rates into the personal tax system which add further complexity into the already complicated regime.

The real impact of frozen tax allowances and thresholds.  Someone earning £20k is almost £600 worse-off today; they will be over £1,000 worse-off in 2031.

The personal allowance will be frozen at £12,570 until 2031.  Had it increased with inflation, it should today be worth nearly £16k; and it should be worth closer to £18k.  This is a significant tax increase on ‘working people’ on lower incomes.

A Budget for the Labour Party – not the economy, not business, not working people

The effect of frozen personal tax allowances and thresholds is severe for middle earners and has been a feature since 2010 when the higher rate band was £43,875; today it is £50,270 when it should be almost £68,500 had it increased with inflation.

Was that Rachel Reeve’s last Budget?  If it was, she’s had her thunder truly stolen by the OBR with their inexcusable early release of the Budget.

The chaos was summed up by the Office for Budget Responsibility publishing the forecasts before the speech and leaking the entirety of the Budget before Reeves said a word.

This is the perfect ‘tax and spend’ Budget from the Labour government, and today’s tax policies will leave a devastating impact on the economy for years to come.  It is a Budget for the Labour Party – not the economy, not business and definitely not working people.

Neil Insull, Partner, Blick Rothenberg

In the hospitality sector, many smaller companies are on the brink of collapse

The Budget was, again, silent on major changes to the corporation tax regime.  A relief for many but another opportunity missed by the Chancellor to reduce the tax burden for SMEs particular after the rise in employers NIC in April.  In the hospitality sector, many smaller companies are on the brink of collapse, and while the reduction in business rates is welcome, if not a little late, business owners with significant sums of money at risk understandingly expect the Government to do more.

Artur Vorobyev, Director, Blick Rothenberg

The latest OBR data highlights a disappointing lack of targeted support for the UK financial services sector. Despite the sector’s critical role in driving growth and innovation, the Budget missed several key opportunities:

No incentives for fintech, digital banking, regulation tech, or green finance – areas essential for future competitiveness and sustainability.

No reforms to strengthen the UK’s position as a global financial hub post-Brexit – a strategic move that could have attracted investment and safeguarded the UK’s leadership in financial services.

No action to ease the regulatory burden – at a time when clients are already voicing concerns about compliance costs. With deregulation trends in the US, the UK risks falling behind in global competitiveness.

No targeted funding for digital transformation or payments modernization – critical for efficiency and innovation in the sector.

No initiatives to leverage AI for productivity gains – despite significant AI investments across the EU and globally, there is no clear message on supporting AI and fintech development in the UK.

These omissions raise questions about the UK’s long-term strategy for financial services and its ability to remain competitive in an increasingly digital and globalized market.

Fiona Fernie, Partner, Blick Rothenberg

The taxing of Electric Vehicles per mile is presumably on mileage driven in the UK.  The difficulty will be working out how they are going to measure the mileage since not all mileage on the odometer is necessarily in the UK.  However, there is some sense in such a tax – EVs are generally heavier than petrol/diesel cars and do more road damage.

Yusuke Takanishi, Partner, Blick Rothenberg

Increase of minimum wage can accelerate that businesses are more shifting to AI? Gilt market shows positive impact so far but its seems a bit swinging which reflect government inconsistent directions.

Paul Haywood-Schiefer, Director, Blick Rothenberg

Salary sacrifice being brought into NIC unlikely to change taxpayer behaviour much as they won’t really notice the difference (assuming the net amount put into the pension pot) but employers will feel the pinch. Another incentive to turn to AI as quickly as possible to reduce the workforce. A problem that the Government doesn’t seem to think is coming with their forecasts for unemployment reducing to 4.1% by 2030.

Sean Drury, Partner, Blick Rothenberg

However, a number of these measures are deferred therefore not immediate in one way is a bit of a relief but we will have a general depression around long term investment and gloom now with every year deferred pain appearing – it is like waiting for a painful operation on a long term NHS waiting list.

I am not sure the Class 2 top up scheme for pensions was a “Tory policy” – too much blame when it is not due- this is just how pensions work and was simply clarified.

Freezing thresholds will actually be an accounting entry and only affect the future, but pensioner relief is welcome.

On Landlords it is completely false as they are limited on debt reduction to 50% – the cliff edge will mean many more landlords will reduce stock so rents will significantly increase.

She also completely brushed over the increase on people who save – why save anymore? The principle is not the same.

Tomm Adams, Partner, Blick Rothenberg

The widely-speculated cap on salary sacrifice contributions to workplace pension schemes at £2,000 has been confirmed – but with implementation delayed until April 2029. It is predicted to raise £4.7bn in the first year of implementation.

This would protect value for lower earners but for someone earning say £60,000 a year and contributing 5% via salary sacrifice, it will cost them an additional £20 a year. This might not sound like much, but it will cost the employer an additional £150 a year.

I expect to see employers reining in the generosity of their contributions – for example curbing additional matched contributions for those using salary sacrifice – and a wider effect on salary increases and bonus payments in general, which is not good news for workers and growth in the economy overall. It will have a material effect on UK retirement readiness

Mandy Girder, Partner, Blick Rothenberg

Unlike previous budgets there is no targeted support for arts, media or culture – despite the promised “commitment” to the creative industry. The proposed increase in taxes to dividend, property income and savings, directly reduce the net earnings of freelancers, incorporated creatives and content creators who rely on such investment income between projects.

Where freelancers use salary sacrifice pension schemes they too will lose National Insurance exemptions on contributions above £2,000 per annum, diminishing previously essential long tern savings advantages. The budget makes it a tough operating environment for independent artists and freelancers, it is disappointing that these individuals have not been considered. The creative industry needs more support, not tougher sanctions.

Michael Holland, Partner, Blick Rothenberg

US/UK Tax

The increase in UK tax on property income creates another large gap between the US & UK taxation of property due to difference in US depreciation deduction and creating more excess foreign tax credits. Planning will be needed around how long to hold these properties in order to maximise the use of the Foreign Tax Credits. The UK is become a more expensive location for Americans to continue to live.

Robert Salter, Director, Blick Rothenberg

The decision to have Alan Milburn review the causes for ‘rising youth economic inactivity’ seems to be unnecessary.  The reality is that many commentators would just highlight that the consistently high increases in the national minimum wage – particularly the wage which applies for the under 21s – together with the increase in employer NICs mean that it is inevitable that employers are considering whether to employee someone – especially someone with no work experience – more and more closely.

Simon Gleeson, Partner, Blick Rothenberg

Rachel Reeves missed an opportunity to highlight the recently confirmed £55bn of long-term Research and Development (R&D) funding available to maintain the UK as the leading partner of choice to international investors. The economic benefits have been proven: innovation and job creation facilitated by UK’s vast diverse highly skilled talent-pool across universities and research facilities.

Cara Spinks, Head of Life & Health at Broadstone

IPT tax take downgraded but Chancellor misses opportunity to support workforce health and productivity

While the OBR has nudged down its forecast for Insurance Premium Tax receipts, this doesn’t change the bigger picture. The Chancellor has overlooked a clear opportunity to support the recommendations of the Keep Britain Working review, by encouraging take up of private health insurance products through reducing or removing Insurance Premium Tax for employers and individuals.

Private health services play an important role in prevention and early treatment of conditions which affect individuals’ ability to work. The refusal to lower or eliminate extra taxes on the products is at odds with the Chancellor’s mission to lower NHS waiting lists, encourage the productivity of the workforce and boost economic growth.

Daniela Hathorn, Senior Market Analyst, Capital.com

Rachel Reeves’ 2025 Budget has so far centred on a strategy of plugging the fiscal gap through significant tax increases while simultaneously committing to long-term public investment. A key feature is the freezing of personal income-tax thresholds for another three years, a move that effectively raises taxes over time as wage growth pulls more people into higher bands. Additional revenue-raising measures target dividends, high-value property, gambling, and other sectors, while spending plans emphasise investment in health, education, infrastructure, defence and technology.

This mix of higher taxes and expanded public investment has created a mixed response in financial markets: gilts have risen, pushing yields lower, and the pound has strengthened against its major peers in a sign that investor concerns about fiscal credibility may have been tempered slightly. The FTSE 100 remains stable within the wider uptrend that has taken over global equities in the last few days.

That said, sentiment is fragile, with investors weighing the risk that back-loaded tax revenue, elevated borrowing costs, and uncertain growth prospects could make the fiscal plan difficult to sustain. While certain sectors poised to benefit from planned public investment have reacted more positively, overall market behaviour reflects caution and a focus on the government’s ability to deliver credible long-term fiscal discipline.

Mike Barrington, Senior Associate at Charles Russell Speechlys

The Autumn 2025 Budget tightens the tax landscape for investors and entrepreneurs. Cuts to capital gains relief on EOT transactions, higher dividend tax rates and a three-year extension of frozen income tax thresholds could raise the cost of exits and profit extraction, prompting many to revisit succession plans, remuneration strategies and deal timelines. Additionally, higher dividend rates and prolonged fiscal drag also mean more owner-managers and investors will be pulled into higher tax bands, making it vital to reassess the balance of salary, dividends, pensions and capital returns.

Reduced CGT relief on EOT transactions is the most immediate shift, with sellers now facing a material CGT charge that may affect pricing and funding structures. We can expect EOT transaction activity to decrease, at least initially, whilst shareholders consider if the EOT structure is truly right for their business.

The Chancellor also launched a call for evidence on improving the UK’s entrepreneurial ecosystem. Engagement will be key to ensuring new measures reflect practical realities for founders and growth companies.

Paul Noble, CEO, Chetwood Bank

Uncertainty is never good for banking, and the endless speculation about today’s Budget has already tested confidence across the sector. Households and businesses alike have struggled to best prepare for these measures blindfolded, but now that we know, the task is to steady the ship, rebuild momentum, and focus on making the most of the months ahead.
The decision not to increase levies or add new regulatory burdens on banks was welcome, given the strong contribution our sector already makes through the taxes we pay. We have a critical role to play in supporting growth for businesses and ensuring stability for households, and today’s budget will not hold us back from that goal.
A healthy and competitive banking market delivers better outcomes for customers, so we must hope that the measures announced today allow newer players to grow and innovate to keep the banking space diverse and competitive.

Vann Vogstad, Founder and CEO of COHO

It will be the tenants as well as landlords who pay the price for the Chancellor’s move to increase Property Income Tax by 2% by April 2027.

Landlords have become an easy political target and now they will be faced with an additional 2% on basic, higher and additional rates, taking these rates to 22%, 42% and 47% respectively. For nearly a decade, property investors have operated with little to no profit surplus. Raising taxes on rental income, especially when coupled with the upcoming Renters’ Rights Bill reforms, will inevitably result in higher rents. That’s just basic economics, and it will be the tenants who pay the price.  

An investment must make sense financially, and when costs rise, so do rents unless tenants simply cannot afford them. In those cases, landlords will be forced to sell. This won’t necessarily help renters onto the property ladder though, as demand for housing remains strong and prices are unlikely to fall meaningfully. Instead, we’ll see more properties acquired by large corporate landlords, who tend to prioritise shareholder value over tenant wellbeing. 

The Government is particularly targeting the ‘accidental’ landlords who aren’t operating like a large corporation but who are adding value to the economy by investing money into refreshing old properties or creating new homes by converting the lower-demand large properties into share living. The relationship between landlords and tenants is too often considered by the government as hostile, rather than as what it should be, a valued relationship between service-provider and customer.

HMOs (House in Multiple Occupation) will be hit the hardest. These landlords tend to generate higher rental income per property of around 12%-18% ROI with typical six-bed homes, compared to standard 3%-6% ROI on a two-bed buy-to-let investors. HMOs will therefore shoulder a particularly large share of the 2% property tax hikes. These landlords house those on lower income, and those who most value connection with others.  

Whilst landlords can’t raise the rent much whilst occupied, as tenants leave, landlords will reset rents to market rates, and as unprofitable properties exit the market, demand for those that remain will intensify. This will disproportionately affect professional tenants, both in single lets and HMOs, with HMOs reacting faster due to shorter tenancy cycles. Longer-term, we may see more properties shift towards social housing, where government rents often exceed market rates, further squeezing those seeking affordable, high-quality homes. 

However, people often rent out of choice or because they can’t afford a deposit on a mortgage. Unlike home ownership, renting supports mobility, lets people move quickly for work, removes the burden of major upkeep, and, in shared living, gives people the connection and support that comes from living with others.  

But undermining landlords’ viability risks reducing choice and flexibility for renters. The sector needs predictability and incentives to invest in better homes, not policies that drive out those committed to quality and community. 

Instead of adding NI to rental income, the Government should focus on measures, such encouraging councils to approve more high-quality shared living and rental homes. There should be incentives to home creation, such as for converting a six- bed property, which is lower in demand, into six single bed properties, which are higher in demand.  

Easing the stamp duty surcharge on second homes, reviewing mortgage interest rules, and dropping NI proposals would reduce costs and encourage investment in upgrading ageing stock. Treating secure, affordable rental housing as essential economic infrastructure, rather than a secondary concern, is the only way to restore balance and stability for millions who rely on the private rented sector. 

Azimkhon Askarov, Co-CEO & Partner of CONCRYT

Rachel Reeves’ 2025 Budget marks a turning point for the UK economy. By increasing taxes on wealth and assets under the banner of “taxing those with the broadest shoulders,” the Chancellor is signalling that Britain’s growth model – historically driven by domestic consumption, inward investment, and London’s role as a magnet for global wealth – is shifting and so too must the mindset of British merchants.

As higher earners and investors look abroad for more favourable tax environments, the ripple effect will reach far beyond London’s elite. Local businesses that once thrived on domestic spending are already feeling the chill, from luxury retailers to service providers. For many, looking overseas is no longer just an opportunity, it’s a survival strategy.

This exodus of wealth and spending power will reshape how British merchants think about growth. Expanding into international markets will become essential, not optional. That means getting serious about cross-border payments, ensuring they can move money efficiently, manage currency risk, and offer customers seamless payment experiences wherever they are in the world.

In this new landscape, the ability to trade globally and get paid globally, will define the next generation of successful British businesses.”

Edvards Margevics, Co-CEO & Partner of CONCRYT

Rachel Reeves’ Budget may have been framed as a necessary step to restore fiscal stability, but the scale of the tax hikes risks alienating investment in one of Britain’s most dynamic sectors, technology. The UK’s tech ecosystem has long relied on a delicate balance of entrepreneurial confidence, international capital, and a supportive policy environment.

This Budget shifts that balance.

Raising taxes on capital, wealth, and assets sends a difficult signal to venture investors and founders alike, particularly those who have the option to relocate their capital, teams, or headquarters abroad. At a time when countries across Europe are actively competing to attract high-growth technology businesses, the UK cannot afford to make itself less appealing to the innovators driving economic productivity.

The danger is that we create a two-speed economy: one where ideas are born in Britain but scaled elsewhere. For payments and fintech firms, this is particularly concerning, innovation thrives on cross-border collaboration, fluid capital movement, and investor confidence. If investment begins to flow out of the UK, the long-term cost won’t just be lost tax revenue, but diminished global influence in emerging fields such as AI, digital infrastructure, and financial technology.

In an era defined by digital trade, Britain’s growth story depends not on taxing innovation, but on enabling it to move and scale globally.

Ian Stewart, chief economist, Deloitte

The big surprise is that despite lower productivity growth, the Chancellor has been able to build in a bigger-than-expected margin of error into public finances. Faster wage growth has come to the Chancellor’s rescue, boosting tax receipts and enabling fiscal targets to be met.

“Budget measures will help bolster growth and dampen inflation in the short term. However, today’s announcements will likely have a longer-term impact on growth, as the Chancellor is raising an extra £26bn a year in tax.

Rachel McEleney, tax director, Deloitte 

The Chancellor confirmed today that the national insurance (NIC) relief for employees and employers on contributions paid by way of salary sacrifice will be limited to the first £2,000 from the 2029/30 tax year.

Currently, salary sacrifice can save employees 8% or 2% in NIC on the amounts that they contribute, whilst employers save 15% on the same amount. If an employee earning £50,000 sacrifices 10% of their salary, their income tax and NIC is currently calculated based on the reduced salary of £45,000. The proposals will cause the employee’s NIC deductions in their payslips for 2029/30 to increase by £240 over the course of the tax year. The employer’s NIC will increase by £450. 

While not directly paid by the employee, some schemes currently pass on part of the employer’s NIC savings to employees through a top-up in employer contributions. The erosion of these savings could lead to employers reviewing their pension arrangements, possibly leading to lower overall contributions being made to the employee’s scheme.

The changes do not affect the income tax relief on salary sacrifice contributions. Like other types of pension contributions, these will continue to provide income tax relief at the individual’s marginal tax rate. This can include reducing the amount of high-income child benefit charge or keeping taxable income below £100,000 to prevent the loss of the personal allowance or tax-free childcare.

Toby Price, head of stamp taxes, Deloitte

The new Stamp Duty relief is positive for IPOs in the UK. From tomorrow, it will reduce the cost of trading shares during the three years after an IPO is launched. Capital markets leaders in the UK have long called for the abolition of Stamp Duty on share trading, so this news will be received positively by the City.

Amanda Tickel, head of tax and trade policy, Deloitte UK

This was a big, broad budget raising £26bn in taxes, with the burden resting more on individuals than businesses. The freezing of income tax and NIC thresholds went beyond what was trailed, extending into the next Parliament and is expected to raise £7.8bn in 2029-30. 
The 88 measures announced today undoubtedly add to the complexity of the tax system; there was little simplification, except the abolishment of one duty. That said, many of the tax rises are being phased in gradually, which gives time to prepare and adapt.

There is a positive message around growth if you consider the life cycle of business – there were improvements to the Enterprise Management Incentives at start up, through to the relief from Stamp Duty on newly listed shares. Of note was the pioneering approach to road pricing, building resilience into the tax system for the future.

There is a continued focus on closing the tax gap, with further actions announced – including a whistleblower scheme to improve the way the tax system is administered – set to bring in a massive £10bn per year by the end of the parliament.

Nigel Green, CEO, deVere Group

A masterclass in disincentivising saving and investing

When you raise the cost of holding income-producing investments, people will of course reconsider how and where they invest.

You end up penalising patient capital and rewarding cash withdrawal. This is the opposite of building a thriving stock market.

The government says it wants to rebuild the pension and savings culture, yet it imposes fresh barriers on anyone who actually saves or invests.

That sends a simple message that locked-up capital is subject to stealth extraction. Why would someone tie money into UK equities under those rules when other markets reward income rather than punish it?

Many savers already face low real interest rates. With interest income now facing heavier taxation, returns after tax may be negligible or negative. For retirees or those relying on interest to preserve capital, this compounds the squeeze. When saving becomes unprofitable, people look elsewhere — and often overseas.

If you weaken incentives to save, invest and own property, you drain the lifeblood of wealth creation. You don’t just discourage new money. You encourage old money to move elsewhere

When you make saving, investing and owning property more expensive, you don’t build prosperity. You drive it away. History will teach us that Reeves’ second – and critical – Budget was a masterclass in disincentivising saving and investing.

Ingrid McCleave, partner and tax specialist at city law firm DMH Stallard

The Chancellor has added 2% tax to dividend and savings income, making it 2% higher than equivalent income tax on employment income. 

However, it must be borne in mind that you don’t pay national insurance on dividend or savings income, whereas you do on employment income.

There are already a number of tax reliefs available on dividend and savings income, some which only benefit lower earners. Interest and dividend income within a tax wrapper such as an ISA is tax free. This benefits high and low earners alike.

If your total income not including dividend and interest income is less than £17,570 pa (excluding ISAs), you are allowed to receive the first £5,000 of interest income tax free. This benefits lower earners.

Charles Radclyffe, founder of EasyAutofill

Today was a missed opportunity for the Chancellor to introduce a first-of-its-kind ‘AI income tax’ that would shift the burden from hard working people onto the bots taking their jobs. Instead, the Budget relied on old fashioned levies, leaving everyday taxpayers to shoulder the cost while AI firms continue to benefit from lighter tax treatment.

With the National Living Wage rising, this was also the ideal moment to introduce a minimum wage for robot labour. The UK introduced the minimum wage in the late 1990s to ensure a fair labour market at a time when free movement across the EU was reshaping the workforce. It prevented ‘cheap’ human labour from the continent from undercutting British workers. Today, we face a similar challenge – but this time from software.

If we don’t extend minimum wage principles and tax rules to automated labour, we risk creating distortions far more serious than anything the single market produced. The bottom line is that a 21st century economy needs 21st century labour and tax rules, not regulations built for a world that no longer exists.

Ross Sinclair, Founder and CEO at EIP

It’s disappointing to see the government not taking a harder line on tackling cyberattacks, fraud and mobile phone theft, which should be top of the agenda. With more investment and resource allocation to tackling these issues, the government could have improved insurers loss-rations and kept premiums and costs stable for both businesses and consumers.

James Guthrie, Financial Services Tax Partner, EY

The Chancellor’s decision to reduce the annual allowance in Cash ISAs from £20,000 to £12,000 for under 65s has been prompted, at least in part, by a desire to encourage greater flows of investment from cash into higher-growth investments like stocks and shares to ultimately boost the UK stock market and economy and drive greater returns for savers. This will likely bring a mixed reaction from individuals and businesses.

While promoting informed investment decisions and supporting UK businesses is a plus, a consumer shift into stock market investment is certainly not automatic. Demand for cash ISAs has been rising, as more risk-averse savers and those with short-term plans for their savings, for example for property, often see them as a safe home for their money. These individuals may not want to switch a sizeable portion of their funds into stock market shares. Ultimately, this move could result in people saving less.

Equally, for banks who leverage cash ISAs as funds for household and business loans, this decision could create challenges, potentially leading to higher interest rates, stricter lending criteria and reduced access to capital for firms.

Katie Selvey-Clinton, Capital Allowances Tax Partner, EY

One of the Budget’s largest revenue-raising business measures is the reduction in the capital allowances rate on plant and machinery, forecast to generate £7bn in cash flow over the next five years. Whilst most new assets benefit from generous 100% full expensing allowances, this new measure erodes the tax relief available for older assets and second-hand purchases, which are specifically excluded.

Limiting incentives to new assets restricts the relevance for second hand transactional markets such as infrastructure and real estate and doesn’t reflect the desire to reuse and recycle. The new 14% rate means it will now take over 16 years before the asset is fully written off.

Chris Taylor, Indirect Tax Transformation Partner and E-invoicing Lead, EY

The announcement on e-invoicing in today’s Budget, requiring all VAT invoices to be issued in a specified electronic format from April 2029, is a significant step forward and provides certainty for businesses in terms of timeframe. It also aligns the UK with a number of other markets across Europe who are going live with e-invoicing legislation in 2026.

The Government has explicitly recognised the important role e-invoicing will play in supporting HMRC’s digitalisation goals over the coming years, as well as its ability to reduce the VAT gap.  The announcement follows an initial consultation earlier this year and shows that HMRC is continuing to see the progress and benefits of e-invoicing in other major economic markets.  Whilst not meeting Malaysia’s implementation record of two years, HMRC’s timelines align to those of other major markets who typically move from initial consultation to formal legislation in between three and five years.

An implementation roadmap is expected to be published at Budget 2026 and businesses will need to be ready to engage to ensure that there is as little disruption as possible.

Chris Sanger, UK Tax Policy Leader, EY

The Chancellor delivered on the speculation of a “smorgasbord” of measures, with 44 tax measures raising a net £26.6bn per annum by 2030-31. The benefit of a smorgasbord is that the diner can choose their dishes, but the Budget was more of a stew, serving up all the measures together in one meal.

The ‘meat’ of the Budget was the threshold freezes, the increase in employment and savings taxes, the new council tax surcharge and the mileage charge on EVs. In terms of sweeteners, there was the usual freeze in fuel duty and an extension of the Enterprise Management Incentives. More neutral were the changes to allowances for capital investment by businesses, with a new first year allowance but reductions in allowances for the subsequent years.

Overall, the Chancellor delivered a Budget that raised less in taxes than last year and maintained the Government’s manifesto commitments, making it as palatable as could be expected for a revenue raising Budget. The Treasury Red Book ran to 146 pages but, with the Finance Bill due out next week, there is plenty of detail still to come.

John Phillips, General Manager EMEA, FloQast

The budget offers a split-screen view of the UK economy: commitments to AI on one side, and tax rises that could tighten the margins for innovation on the other. 

Paying down national debt is a sound long-term policy, but the added tax burden will squeeze finance teams already under pressure. That makes operational integrity more critical than ever. Organisations will need clarity, accuracy, and smarter workflows to navigate the constraints. 

Investments in AI can also help to optimise financial discipline. It shifts the account role from “preparers” to “reviewers” and allows routine, rule-based work to be automated with high accuracy, freeing accountants to focus on strategic analysis, resource allocation, and growth initiatives.

Mike Walters, CEO, Form3

The proposed support for expanding EMI and ensuring that the tax system champions the successes of UK business, founders, and employees is hugely promising. Preserving the UK’s status as a global hub for fintech will depend on the government protecting and retaining the deep pools of talent that this industry relies on.

It’s disappointing that there was no mention of any plans to back the progress made by the National Payments Vision. The UK is currently a global payments leader, and building out resilience in banking and payments will set the stage for the next decade of growth. The government needs to build on its Mansion House pledges and ensure a steady stream of capital continues to flow into high-potential companies where it can directly translate into jobs and economic growth.

Gregory Marchat, Partner for Financial Services at Forvis Mazars

The Chancellor’s decision not to increase the banking surcharge has ensured the UK’s appeal to international financial institutions remains.

Global banks require predictability and consistency in both regulation and taxation to plan long-term investments, which is why we welcome the Chancellor’s move. Financial services contribute around 8% of the UK’s GDP – supporting growth in this sector should remain a policy priority, not a revenue-raising exercise.

Nik Kairinos CEO & Founder, Fountech AI 

While the lead-up to this Budget has hardly been uplifting – marked by fiscal pressures, sluggish growth, and rising taxes – recent tech-focused measures at least indicate that the Chancellor is beginning to make the right sounds about supporting the UK’s tech industry.

The plans for an AI Growth Lab, the creation of a Sovereign AI Unit to scale national capabilities, guaranteed payments for UK startups developing AI hardware, and the decision to maintain R&D tax credits all offer a glimmer of optimism. Taken together, they underscore an intent to back a sector that government forecasts suggest could add up to £400bn to the UK economy by 2030.

But sounding supportive and being supportive are not the same. The UK tech ecosystem will only reach its full potential if business leaders can rely on broader economic stability. According to the Stanford AI Index, private investment in UK AI still significantly lags behind the US ($4.5bn vs $109.1bn), highlighting ongoing challenges in attracting investment, talent, and capital. The next step for policymakers should be clear: move beyond signalling and create conditions that not only support innovation today but also build sustained investor confidence, strengthen talent pipelines, and unlock the full potential of the UK’s pioneering tech sector.

Louise Lewis, Partner and Joint Head of Trusts, Estates and Tax, Freeths

Reducing the ISA allowance to £12,000 and introducing pension changes from April 2027 both risk discouraging long-term saving. Lower ISA limits reduce flexibility for tax-efficient investing, while bringing pensions into the inheritance tax net makes retirement planning more complex. Together, these measures send a signal that saving for the future is becoming less attractive.

Joe Lewis, Partner and Head of Corporate, Commercial and Employment Teams, Gardner Leader

With the Chancellor’s limited scope to raise prevailing tax rates, we may see increased levels of scrutiny and enforcement being employed by HMRC as a revenue tool. It would be prudent to expect more enquiries into reorganisations, share buy-backs, goodwill valuation and business-property relief optimisation, meaning a greater focus on robust valuation methodology and tax clearances for transactional areas historically treated pragmatically. 

Headline corporation tax may have stayed put, but frozen income tax thresholds, tighter deductions and the effects of inflation will lift effective rates for owner-managed businesses. Increases in dividend taxation will further affect how owners extract value. Combined with sharper HMRC scrutiny, the environment is set to become more demanding for smaller corporate groups. 

Matt Britzman, senior equity analyst, Hargreaves Lansdown

Banks dodge a bullet as Reeves keeps tax changes off the table

UK lenders emerged largely unscathed from today’s Autumn Budget. Shares had been edging higher into the announcement on whispers that the sector would be spared – and a collective sigh of relief once Rachel Reeves took her seat confirmed those rumours, propelling Lloyds, Barclays and peers into the day’s top risers.

Reeves resisted calls for sweeping tax changes, leaving the industry outside the political crosshairs – for now. It’s a delicate balancing act: banks are posting bumper profits, and few voters would have mourned tougher levies. Yet policymakers know the stakes. Push too hard, and the UK risks hobbling a critical engine of credit, investment and growth.

The sector already shoulders one of the world’s heaviest tax loads. Further hikes could have dented London’s competitiveness – a point CEOs have hammered home, particularly global players who might rethink their UK footprint if the screws tighten.

Valuations aren’t as compelling as they were earlier in the cycle, but upside remains. UK banks are well-capitalised, highly profitable, and positioned to deliver stronger shareholder returns through 2026. For investors, the story has moved on from scraping a living to one about steady, disciplined growth.

Hal Cook, senior investment analyst, Hargreaves Lansdown

Balanced Budget keeps gilt yields stable post leak wobble

All bond investor eyes in the UK are on gilt yields for Budget day. Yields spiked a little initially, but the market has been sanguine since in the build up to Reeves’ speech.

The leak of the OBR forecasts caused some volatility, falling then rising before falling again as the speech began. The 10-year is under 4.45% at the time of writing (they closed at 4.5% yesterday), putting it near the bottom of its range so far in 2025. Moves of 0.05% are relatively common.

Over 2025, there have been two trends in gilt yields. Short-dated yields of up to 5 years have generally fallen while medium and long-dated yields (10-year and longer) have been broadly range bound (while very long-dated yields had been on an increasing trend until September, moves since then have brought them back down below where they started the year).

During October, in the build up to the Budget, yields fell across the board. This reflected expectations that the Budget was going to contain notable tax increases and bring greater confidence in the government’s ability to balance the books in future. These falls were scuppered earlier in November when it was leaked that expected income tax rises had been scrapped, leaving investors scratching their heads as to how the government was going to increase revenues.

Coming into today, gilt investors were hoping for measures that allowed them to have greater confidence in fiscal responsibility going forward, which would have allowed yields to fall (and prices rise). So far, the government hasn’t provided much by way of surprises for bond investors, evidenced by the relatively small moves in yields so far. As ever though, the devil will be in the detail so things could over the coming hours and days.

Why do gilt yields matter?

When the government wants to borrow money, it issues Gilts (UK government bonds) to the bond market. Bond investors demand interest in return for lending the government money. Gilt yields are the interest rate that the UK government has to pay in order to borrow money.

The UK has had a budget deficit for many years – meaning they’ve spent more than they have received in revenues. In fact, there’s only been 5 years since 1970/71 where there has been a budget surplus in the UK, and the last time this happened was 2000/01.

When the government spends more than it receives in revenues, it has to borrow to make up the difference. The gilt yield matters because it impacts the cost of borrowing – the higher the yield, the higher the cost of borrowing.

Importantly, changing gilt yields don’t impact the cost of debt already issued. But they do impact the cost to borrow in future. And it’s common for the government to have to refinance previous borrowing as gilts mature and large maturity payments become due. If they’ve borrowed cheaply in the past and it costs them more to borrow today, as they refinance historic debt, their interest costs will increase. The opposite is also true.

Higher costs of borrowing could reduce future government spending

This is why governments worry so much about their bond yields. We’ve seen a couple of events in recent years where changes in bond yields have forced a change in government policy. The most obvious was the Truss / Kwarteng mini-Budget in 2022. But the US had a similar issue in April, following Liberation Day, with rises to US Treasury yields cited as one potential reason Trump backed down from his initial tariff implementation date of 9 April.

Following the Spring Statement in March, it was estimated that the UK Government would need to issue £300bn of gilts in the 2025/26 tax year. The figure for 2026/27 was slightly lower in the region of £275bn.

If the average cost of debt reduces by around 1%, this would save the government roughly £6bn in interest costs per year for gilts issued in the two financial years from 2025-2027. The opposite is also true. In a world where big numbers get thrown about without much consideration for their size, it’s worth just reiterating that £6bn is £6,000,000,000. That’s the equivalent of 120,000 government employees (teachers, nurses, police officers etc) at an average salary of £50,000. Gilt yields matter and not just for investment returns.

Sarah Coles, head of personal finance, Hargreaves Lansdown

The Lifetime ISA has provided an essential boost for hard-pressed young buyers, desperate to get into the property ladder. It has also proved a valuable way for people to save for retirement, especially self-employed people, who fall seriously short when it comes to pension contributions.

The right consultation on its replacement is vital, and needs to ensure that dedicated savers and investors, who have been putting money away for their first property or for retirement aren’t disadvantaged by any change.

Helen Morrissey, head of retirement analysis, Hargreaves Lansdown

Today’s announcement on the Lifetime ISA will be worrying for those who rely on it for their retirement savings. The LISA has the ability to have a huge impact on the retirement prospects for groups such as the self-employed. This is a group that is not included in auto-enrolment and so miss out on an employer contributions. They may also find pensions lack the flexibility that they need given as money cannot be accessed until at least the age of 55.

The bonus on the Lifetime ISA has the same effect as basic rate tax relief on a pension and any income can be taken tax free after the age 60. Added to this, money can be accessed early in case of emergency, albeit subject to an exit charge.

It’s a product has the potential on the long-term resilience of this group. The consultation into a replacement must consider the needs of self-employed people saving for retirement. They are already under-saving, so it’s important not to put any more barriers in the way.

Emma Wall, Chief Investment Strategist, Hargreaves Lansdown

VCT tax blow hidden in small print

The Chancellor has delivered a blow to investor and early-stage businesses alike by slashing the tax relief available on venture capital trusts. The Budget speech led with the positive news that both annual and lifetime limits would be reviewed to support scale up and not just start-up companies. This will be warmly welcomed by the industry which has called for limits to be re-examined to support broader growth opportunities.

But hidden in the small print of the Budget document was the detail that in order to ‘balance’ this change, the tax relief on VCTs would be cut from 30% to 20% following the 2025/26 financial bill – so investors have until the end of the tax year before the changes come into force. 

We are encouraged by the measures announced in the Budget to support a retail investment culture, including the stamp duty tax break for IPOs, and the British investment hub.

However, the tax relief on VCTs has provided many investors with the incentive to support early-stage UK businesses, which in turn support the domestic economy – just the sort of growth this Government is championing. This tax change seems counter to that agenda.

Fred Soneya, Co-founder and General Partner at Haatch

Government should be applauded for EIS limit increase and VentureLink initiative

Increasing EIS caps is noteworthy and should be praised. For over 30 years now, this scheme has been vital in channelling investment into early-stage companies, and by lifting the amount a company can raise through EIS the Chancellor will help ensure that the most promising scaleups – those already approaching their EIS cap – can access more capital to support their long-term growth. 

The new VentureLink initiative is equally positive. Unlocking more private investment into British businesses by utilising capital in pension funds was first outlined under the Tories, but proper mechanisms are required for this to take effect – charging the British Business Bank to consult on the development of VentureLink to enable pension funds to invest in private companies is a wise move by Labour, and one that we should applaud.

Lifting EMI cap is positive

Widening the scope of Enterprise Management Incentives is a positive move. These allow small businesses to incentivise employees by offering them share options without NI or income tax liabilities, and it’s a powerful weapon in a startup’s arsenal as they battle to attract and retain the best possible talent. In the mission to ensure the UK remains as attractive as possible to entrepreneurs and, more importantly, a great country in which to scale a company, these little fixes can make a big difference, so the Chancellor has done the right thing today by ensuring more small businesses can leverage EMIs.

Good news – R&D left alone and no wealth tax

For the tech sector, leaving R&D tax credits alone was a good outcome. SMEs need certainty and stability if they are to plan for the future effectively – and this isn’t possible when policy and taxation are constantly changing, so the Chancellor was right to avoid the temptation to tinker with this.

Similarly, the fact that some form of ‘wealth tax’ wasn’t introduced is good news, even if the broader tax landscape has become less favourable across the past two Budgets. A targeted wealth tax would likely have a negative impact on private investments – such as the availability of private equity and VC funding for high-growth startups – making it counterproductive for productivity and economic growth.

Ian Stuart, CEO, HSBC UK

HSBC UK is proud to support over 15 million customers and welcomes the Government’s efforts to drive growth across the country. We are therefore pleased to make available over £11bn of measures to back businesses and households.
We are supporting UK SMEs by making an additional £5bn of lending available over the next five years. This will underpin the growth ambitions of thousands of small businesses across the country, helping deliver on the objectives in the Government’s Small Business Plan.
We will increase cashback to first-time buyers from £700 to £2000 to help with the cost of buying a home. This is expected to mean an additional £1bn of lending and builds on our programme to increase borrowing limits for first-time buyers, allowing 24,000 more customers to get onto the housing ladder.

We will invest over £100m in our network – including ATMs – over the next three years and maintain our existing bank branch network in 2026. We will also create 1,000 highly skilled jobs over the next five years, offering mortgage and investment support to first-time buyers, homeowners and retail investors.

We will make available an additional £1bn of financing to the social housing sector in 2026 and a further £4bn by 2030. This will support the construction, renovation and management of tens of thousands of new social homes across the country.

By making available over £11bn of financing support, we can go further in driving SME expansion, helping first-time buyers onto the property ladder and supporting the customers and communities we are proud to serve.

Lee Holmes, CEO of INFINOX

The 2025 Budget locks in a structurally higher tax environment, with frozen thresholds, increased dividend and savings taxes, and tighter pension rules reshaping how UK clients save, invest and manage risk. These aren’t cyclical adjustments, they will alter domestic capital flows and retail trading patterns for the long term.

For INFINOX and similar multi-market brokers, the near-term impact will be tighter domestic liquidity as households absorb the fiscal shift. But over time, we expect greater appetite for global diversification, FX hedging and non-UK exposures as clients rebalance portfolios away from a compressed domestic market.

The £22bn fiscal headroom may stabilise gilt markets and dampen volatility at the policy level, but the broader environment remains one of consolidation rather than stimulus. In practice, this means clients will look for clearer risk frameworks, more transparent execution, and broader cross-border market access.

For a globally positioned firm, the Budget underscores the importance of scalable infrastructure, disciplined risk management and multi-jurisdictional market access, all essential for helping clients navigate a landscape where structural tax pressures and shifting capital allocations become defining features of the trading environment.

Will Stevens, Partner, Killik & Co

If a buy-to-let investor wasn’t already reviewing their portfolio, they certainly will be now. The 2% increase on income tax from properties adds yet another straw to the back of an already weakened camel. A long running theme of hammering property owners with stealth taxes, higher administrative burdens, capital gains taxes and a lack of long-overdue Stamp Duty reform leaves the market very weak. Property as an asset class is a shadow of its former self, and we expect many investors to look elsewhere for easier, more stable and fulsome returns.

Brian Byrnes, Head of Personal Finance at Moneybox

We are very disappointed to see the Government’s announcement on another Lifetime ISA consultation. The Lifetime ISA has been a lifeline for first time buyers and has positively changed the savings habits of a generation. Today’s announcement will cause huge concern and uncertainty for existing users, many of whom lay at the heart of the home affordability challenge. We urge the Government to reassure the 1.5 million Lifetime ISA savers that they will not be disadvantaged by this consultation and that the positive steps they have taken to secure their financial future won’t go to waste. 
As the UK’s leading provider of the Lifetime ISA, we have long campaigned for targeted reforms to future-proof this fantastic product. In September, following the Treasury Select Committee consultation, the Government formally recognised the importance of the Lifetime ISA in supporting first time buyers. Today it should have built on these findings and committed to future-proofing measures such as an annual review of the property price cap and a reduction in the withdrawal penalty from 25% to 20%.
With no broader first-time buyer support in this Budget, all the government has done is create instability and uncertainty for the only product it currently offers to support young savers.

Cash ISA

The Cash ISA is the UK’s most popular savings vehicle, so today’s cut to the annual tax-free limit will understandably cause concern for many. In fact, in the 24/25 tax year, two-fifths of Moneybox Cash ISA customers deposited more than £12,000, indicating that this reduction in the allowance will impact a substantial proportion of savers.
It is vital that the government recognises that cash savings remain the bedrock of financial confidence and a cornerstone of financial resilience. A strong cash buffer is what ultimately gives people the confidence to invest over time. At Moneybox, we see more than a million people — many on modest incomes — relying on tax-wrapped accounts to build security and plan for the future. Sudden changes to allowances risk undermining that confidence.
We support the government’s ambition to encourage more people to invest for stronger long-term returns but it is widely accepted that cutting the Cash ISA allowance alone will not create an investing culture. Real change requires policy stability, a clear long-term savings and investment strategy, and meaningful support for those who are less confident about investing.

Salary Sacrifice

The Chancellor’s decision to cut pension salary sacrifice will directly hit the wallets of working people and undermine the incentive to save more for retirement at a time when we already face a crisis in pension adequacy.
Today’s announcement is a clear example of short-termism. By making pension saving less attractive, future generations will not only bear the cost of supporting the over 14 million people already undersaving, but also the many others negatively affected by this cut to salary sacrifice. It is crucial that the Government reconsiders this policy and delivers a pension system that truly meets the needs of the nation.

Jason Whyte, financial services expert at PA Consulting

Pensions

From April 2029, capping salary sacrifice pension contributions at £2,000 a year is forecast to raise £4.7bn – making it the second-biggest revenue source after the three-year tax threshold freeze. Taken with the freeze on income tax thresholds, these changes will impact more people than expected. At auto-enrolment contribution rates, a pre-tax employee contribution of 4% reaches £2,000 per year at a £50,000 salary. This is very close to the higher rate income tax band, and by 2029 one in seven UK taxpayers are expected to pay higher rate tax and so might be affected by the salary sacrifice changes. From April 2029, pension contributions above the £2000 limit will attract 2% NICs for employees and 15% for employers. The amounts could be significant: the expected £4.7bn raised averages to around £1,000 per higher rate taxpayer, mostly in employer’s NICs.

Faced with what is effectively another increase in national insurance, albeit only on higher earners, employers may reconsider whether to scale back the generosity of their pensions offer. Over the past 20 years, many employers that adopted salary sacrifice have passed on the benefit of reduced NICs by offering more generous pension contributions. It’s unclear whether employers will absorb the additional cost or seek to recoup it with less generous employer contributions.

Meanwhile, the cost of state benefits to the retired generation continues to escalate.Today’s workers are effectively funding their parents’ retirement – without any certainty that they will receive equally generous benefits. Successive Chancellors have shied away from reforming the state pension Triple Lock, which demands an increasing share of tax each year, while implementing changes (such as the salary sacrifice cap) that discourage today’s workers from saving for their own future.”

Retail savings and investments

Lifetime ISAs are expected to be scrapped in 2026 and replaced with a simpler ISA product, geared towards supporting first time buyers.Lifetime ISAs have been popular with savers, but there has always been a concern that people could miss out on tax benefits and employer contributions if they opted for a Lifetime ISA over a pension. If they are abolished, the industry is unlikely to feel their loss. 

This is a Budget designed to encourage investment. Taxes on income from property, dividends and savings rise by 2 percentage points, narrowing the gap to earned income. The Cash ISA limit is reduced for the under 65s. The combined effect is to steer savers towards long term investment rather than property or cash. The market has responded positively: shares in wealth platforms jumped following the announcement.

John Dentry, Product Owner of the Current Account Switch Service at Pay.UK

Today’s Autumn budget will have been watched closely by money-conscious consumers, and for many the outcome of the Chancellor’s announcement will be unsettling. Amid larger questions consumers will inevitably have around income tax, savings and pensions, we believe this is a good moment to take stock.

Importantly, the banking market will adjust to today’s announcement, and major fiscal events such as this often lead to a more competitive landscape. Switching bank accounts is a great example how a healthy banking system retains that competition and value for customers. Switching levels in the UK remain continuously high, and consumers are increasingly willing to bank with a provider that better meets their needs.

With today’s changes in mind, banks and building societies across the UK will review what they’re offering customers, and as a result there could be a bank account out there that is better suited to your own needs and goals.

While we understand that there is no silver bullet to remedy financial worry, reflecting on whether you have the right bank account for your needs and goals is a simple first step to take, and one entirely within your control.

Saif Derzi, founder of Property Buyers Today

This tax rise could put more pressure on an already strained rental market as landlords might now look to sell their properties to avoid paying higher tax bills. I recommend that property owners review their investments and recalculate their returns to ensure that they are clear on what this tax rise will mean for them.

While the Chancellor is expecting to raise £2.1bn overall through personal tax rises, this property tax increase could put rent affordability under further pressure as well. Landlords may attempt to offset the increased tax burden by charging higher rents. Furthermore, if some landlords decide to sell up, the rental market becomes strained, which again may lead to higher prices for renters, as well as more competition in securing tenancies.

A balanced approach that recognises the importance of private landlords in providing housing and protects renters from high rent costs is needed, as both are essential to the stability of the property market.
However, now that the various personal tax rises have been confirmed, this certainty allows landlords to reassess their margins and plan for the future after much speculation and uncertainty. Renters should also keep an eye on any potential increase in rent costs in line with this tax increase.

Peter Churchill, Banking & Capital Markets Tax Partner, PwC UK

Today’s announcement of a three-year exemption from UK stamp duty for newly listed shares will come as welcome news to participants in the UK capital markets. While tax is only one factor in a company’s decision to list in the UK, this change will hopefully provide a shot in the arm to UK markets at a time of increasing global competition for company listings, removing one area of friction in support of the Government’s aim of boosting demand for UK equities.

Cara Haffey, Leader of Industry for Industrials and Services, PwC

The reversal of last year’s ‘giveaway’ that there would be no extension to frozen income tax thresholds beyond 2028 means a further five years of fiscal drag which will continue to hit the public in the pocket. This, compounded by the increase in Employers’ National Insurance Contributions last year, means that nearly a quarter of taxpayers will be paying the higher rate by 2030.

Jake Finney, Senior Economist, PwC

This Budget has not been short of surprises. The biggest was that the downgrade to the economic forecasts was far smaller than anticipated. The Chancellor could have chosen to sit tight, but instead has delivered a substantial package of tax rises to fund some extra spending and to bolster the fiscal headroom. Crucially, a larger cushion against her fiscal rules will reduce the likelihood of further fiscal tinkering in the next Budget. Think tax and save, rather than tax and spend.

Greg Cox, Co-Founder and CEO of Quint Group

The Chancellor claims she is ‘championing innovation’ and ‘backing working people’, yet today’s measures tell a different story. While she faces a difficult balancing act, the government is once again making choices that will weigh heavily on British businesses, especially those trying to grow, hire, and innovate. For a government that says, ‘private investment is the lifeblood of economic growth’, taxing that investment more heavily is a contradictory signal.

Hiking dividend tax, freezing income tax thresholds, and tightening rules on salary sacrifice add up to a stealth tax on growth, squeezing cash flow and increasing the cost of doing business. These policies penalise millions of ordinary savers and early-stage investors, and disincentivise the very risk-takers we need to create jobs and attract investment.

For companies in Fintech – sectors that thrive on investment and reinvestment – these moves risk undermining the very entrepreneurial energy that has made the UK a hub for innovation. Discouraging long-term saving and shrinking the upside for investors will make it much harder to attract risk capital, scale operations, or plan with confidence.

That said, challenging times have a way of sharpening resolve. For firms with vision and discipline, this could still be a moment to double down on lean, high-impact strategies. We welcome the expansion of the Enterprise Management Incentive scheme and the UK listing relief. Those incentives matter, and the recognition that scale-ups need long-term support is the right message. To truly compete on a global stage, UK fintech and innovation need a world-beating, simple, and ambitious incentive regime. We hope today is the first step in that conversation, not the end of it.

Andy Butcher, Branch Principal & Chartered Financial Planner, Raymond James Investment Services

Budget reforms should incentivise saving without adding additional burdens

While the Chancellor’s push to incentivise young, working Britons to invest their money is laudable, a reduction to cash ISA limits is only effective if it comes with a far-reaching educational campaign to demystify investing. The forthcoming changes to financial advice and the launch of online hubs may well help encourage broader participation in non-cash assets, but we should not penalise diligent savers by pushing their cash into taxable environments, as this will serve to increase the tax burden on working Britons, decreasing national consumption.

As the Chancellor said in her speech, the UK has the lowest retail investment rates in the G7, with under a quarter of British adults holding stocks. The increase in the dividend tax rate announced today is a further disincentive to investment, particularly for small businesses owners who take their income via dividends. To counterbalance this and show entrepreneurs that Britain is a good home for business, the Government should also consider increasing CGT allowances.

The Chancellor’s decision to introduce a yearly cap on National Insurance-free salary sacrifice will similarly impact our savings rates, a move which will be detrimental to UK stock markets and everyday people alike. With Britons presently struggling to save for retirement, adding an extra burden will undermine long-term financial security and create additional barriers to saving.

Leo Labeis, Founder and CEO, REGnosys

Failing to introduce dedicated RegTech R&D tax credits is not just a significant missed opportunity, but also a strategic oversight. Innovate Finance and voices across the industry have been clear about what founders need. 

According to KPMG, RegTech is gaining significant investor interest, especially across EMEA, as regulatory compliance grows more complex. The UK has everything required to lead, but without targeted support, we hand a competitive advantage to jurisdictions moving faster to back next-generation compliance technology.

Greater clarity on capital gains treatment, entrepreneur relief, and modernised EIS/EMI rules is exactly what founders have been calling for. This is a strong signal that the Government recognises how vital fiscal stability is for scaling high-growth sectors like RegTech. 

This makes the UK an even more attractive place to build and scale financial innovation and reinforces London’s position as the natural home for RegTech globally.

Alex Marsh, CEO, Salad Group

Any steps to tackle financial hardship via reversals to previous cuts to winter fuel payments and the scrapping of the two-child benefit cap are positive, but the OBR predicts that the latter will only impact 560,000 families. Balancing the books is no easy task, however the Chancellor’s previous warning that ‘everyone will have to contribute’ overlooks what it takes to boost confidence.

Over 20 million UK consumers are currently classed as financially vulnerable but tend to fall between the cracks of the system. They are not on the breadline, they have steady jobs, they are financially responsible. Yet they are locked out of mainstream credit because of fundamental flaws in how the industry operates and therefore prevented from ‘contributing’ via spending. If there is to be true commitment to boosting productivity, it should start by a broader look at addressing financial exclusion – £6.4bn could be added to UK GDP by doing so. Pulling tax levers just won’t cut it, so it’s imperative that the Government collaborates with lenders and credit rating agencies to facilitate better lending practices.

Vroon Modgill, CEO of Sokin

Today’s Budget measures are a starting point at attempting to reinvigorate the business, and subsequently, fintech, ecosystem. The three-year stamp duty holiday for new share listings, for example, is a positive move, but it only helps IPO-ready businesses on the path to listing. To fuel the next generation of fast-growth fintechs, more needs to be done to help earlier stage businesses. We sincerely hope that the consultation to increase support for scale ups and attract more entrepreneurs happens swiftly so that the UK stands a chance at being a destination for innovation and growth.

Brandon Till, Head of Business Solutions, Soldo

As many speculated, the Autumn Budget has highlighted tough economic conditions and delivered fresh challenges for UK businesses to face. Many businesses, particularly SMBs, will be impacted by the rise in national minimum wage, cap on NI exemption for the pension salary sacrifice and the slash on WDAs (writing down allowances). In response, some companies may panic pivot to blunt cost-cutting measures like hiring freezes or redundancies, but that approach risks damaging long-term growth.

Our recent research found that 88% of UK finance leaders believe restricting employees’ access to budgets actually stifles business growth. Because when smart spending is hindered or put on hold, opportunities get delayed and productivity suffers. 

The focus therefore shouldn’t be on hastily cutting costs, but being smarter about where spend goes. By investing in transparent spend management tools and empowering teams with real-time visibility and control, businesses can protect efficiency and make every pound work harder. Financial control is about making informed, proactive decisions that safeguard efficiency and growth, even in uncertain times.

Carol Knight, CEO, The Investing and Saving Alliance

This is a moment for sensible reform of the Lifetime ISA, not a rush to scrap it. LISAs have helped a generation of first-time buyers save for a deposit and, crucially, given many – particularly the self-employed – a simple, engaging way to build retirement savings.

As the government consults on a new ISA for homebuyers, it must protect the strengths of the LISA and give clarity and fair treatment to existing savers – not dismantle a product that is already delivering for those trying to save for both a first home and later life.

Mike Hackett, Chief Commercial Officer, ThinCats

As a lender to mid-sized businesses, the key question from today’s Budget for us is whether it will support growth and encourage borrowing.

Judging by the policies announcement, it will be a challenge for many, more so for smaller businesses, who are less resilient and are already addressing higher taxes and employee costs. This is alongside the proposals to strengthen employee rights. Salary sacrifice changes will add further costs to business, while undermining pension savings – at a time when we want pension schemes to be investing in UK assets and growth businesses.

Changes to CGT rules on Employee Ownership Trusts (EOTs) will undoubtedly dampen what has become a popular route for owner and family managed businesses exploring a sale, albeit we may see an acceleration in deals before the new rules take effect in April.

There are some positives – notably the freezing of fuel duty, rate relief for small businesses and strengthening the Enterprise Management Incentive, but these pale in comparison.

This is not going to stop businesses from growing, acquiring and investing, especially mid-sized businesses who will be planning years in advance, but for certain sectors and for companies at different points of the cycle, it will delay plans and reduce borrower appetite.

Darren Upson, VP of Europe, Tipalti

As many expected, today’s Budget has delivered tax increases totalling £26bn in an effort to tackle debt and protect public services, leaving businesses understandably on alert. Many will now have little choice but to reassess their plans for the 2026 financial year and look closely at where they can drive efficiencies. 

Our recent research shows that 70% of UK finance professionals believe outdated finance processes are limiting growth, yet nearly half (47%) still rely on manual or mostly manual systems. In a volatile economic environment, that’s a real concern, especially as 51% say global trade pressures like tariffs are already hindering expansion plans. Combined with fiscal uncertainty at home, the need for agility has never been greater.

This is exactly the kind of fiscal uncertainty that exposes the weaknesses of manual finance operations. Automation gives leaders the visibility and foresight they need to make better decisions, faster. 

By modernising their operations now, UK businesses can build resilience and stay one step ahead, whatever direction future Budgets take.

David Postings, Chief Executive, UK Finance

We recognise the Chancellor faced tough choices in this Budget and welcome the ongoing support she has shown for the financial services sector. This sends an important signal to international markets that the UK is focused on growth and attracting investment. The changes to Stamp Duty for newly-listed companies will help encourage more trading in UK companies. 

A strong economy needs a strong financial sector, which in turn backs jobs, businesses and the whole economy. We look forward to continuing to work in partnership with the government to support its growth mission and the wider economy.

Sasha Haco, co-founder and CEO of Unitary

If we want AI to genuinely raise productivity, the government must go beyond investment and needs to become an enthusiastic customer for startups.

As an AI founder, I see daily how much potential there is to make public services and regulated industries more efficient. If the UK wants to build and keep world-leading AI companies, procurement frameworks must reward technologies that deliver trustworthy, consistent automation.

As well as capital, founders need customers willing to adopt, test and scale innovative products. By using its own buying power, alongside targeted R&D programmes, the government can set the pace for the wider economy. That’s the clearest way to ensure the UK remains a global home for ambitious, high-growth companies.

Marc Acheson, Global Wealth Specialist, Utmost Wealth Solutions

Taken together, these two measures appear to be an acknowledgement that the changes announced in last year’s Budget to the non-dom regime went too far, that the UK has lost too many of these individuals, and that policymakers have to do more to stem this outflow and get the country back to becoming an attractive destination for wealth. This is particularly important given the country’s top 1% of taxpayers contribute to a third of all tax revenue.

However, questions marks remain as to whether these measures will be effective in restoring trust among non-doms and the wider HNW community and prevent further departures. The £5m cap, while limiting the amount non-doms may ultimately have to settle, still represents a significant new charge for individuals who previously paid nothing before April 2025. Additionally, with the Government announcing £26 billion of tax-raising measures in this Budget alone, it is difficult to see how this will encourage new wealthy individuals to move to the UK.

Simon Martin, Head of UK Technical Services, Utmost Wealth Solutions

With the Chancellor on the hunt at this Budget for tax rises to help plug the fiscal hole – largely borne by the shoulders of the wealthiest – it is no surprise that the Capital Gains Tax regime has been revisited, including the reduction of capital gains relief on disposals to employee ownership trusts from 100% to 50%.

These further changes could materially impact behaviours around investment. Those affected will need to act swiftly, reassessing and adapting their financial plans to navigate the UK’s evolving tax environment.

On Inheritance Tax statistics

IHT receipts are forecast to raise £9bn in 2025/26, a 4.5% increase from last year with receipts expected to continue to increase over the forecast period, driven by rising house and equity prices and the impact of the polices announced at the Autumn Budget 2024 reaching £14.5bn in 2030/31.

Relative to the OBR’s March forecast, receipts are expected to be £0.8bn lower by 2029/30 due to lower in-year outturn which is only partially offset by higher forecast equity prices.  

Inheritance Tax receipts are set to increase from last year and over the forecast period as frozen thresholds, rising asset prices, a tightening of the regime at the Autumn 2024 Budget and extending the freeze on IHT free allowances combine to drive increasing collections for the Treasury.

It sets the scene for continued demand for professional advice as high-net-worth clients look to understand how they may be impacted.

Jonathan Parry, a Partner in the Capital Markets group, White & Case LLP

The £8,000 element reserved for investment is a helpful measure that adds to the growing momentum in the London IPO market with companies and investors once again eyeing the longer-term attractiveness of the UK as a listing venue. It builds on the recent regulatory changes enacted by the FCA and LSE that have levelled the playing field with other leading listing venues and strengthened London’s competitiveness. In particular, this measure should support greater retail investor participation in the stock market, boost liquidity, access to capital for companies and bring the UK more in line with other successful jurisdictions with strong cultures of retail investing.

James Neville, CEO of Yaspa

Today’s Budget sends a clear and important message to the UK’s entrepreneurs like myself. The government is signalling loud and clear that if you build here, Britain will back you. 

As a British‑founded business, Yaspa welcomes this commitment and is proud to be part of a community that drives innovation, creates jobs, and grows the economy.

We are excited to continue to grow and expand, and we look forward to engaging actively in the discussions the government has launched. Support like this will help unlock long‑term investment, give UK start‑ups the chance to scale, and ensure businesses like ours can hire, innovate, and invest in the future of Britain.

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