Budget Day Announcement
So now we know, the budget day has been announced for Wednesday 26th November 2025.
We have no doubt that newspapers will now continue to spread rumours daily until this day, most of which will continue to be without substance and will not come to fruition.
This has been announced as the budget to address an economy that’s “not working well enough for working people” (Budget to address economy that’s “not working well enough for working people” - GOV.UK)
The Chancellor Rachel Reeves may need to find somewhere between £17 billion (the lower end of Capital Economics £17-£27 billion range) and £51 billion (National Institute for Economic and Social Research), so a later budget date will offer the Chancellor more time to plan and be reactive to any further changes during this period. Whilst we all understand that Rachel Reeves has a tough job to do, does the title imply that the working population will not be impacted by this budget? Arguably the employer NIC (National Insurance Contribution) changes last year did impact the working population, albeit indirectly.
In the coming months, we will inevitably hear and read many potential changes that could be made.
You may want to consider tax planning prior to the budget, and I believe some of the pertinent points for your consideration are:
Pension Contributions – if you are considering making pension contributions, why not accelerate the timing of these in case changes are made to tax relief (currently at marginal rates of income tax relief on personal contributions) or the pension annual allowance (currently up to £60,000 each year).
ISA Subscriptions – the last budget saw rumours on Cash ISA limits being reduced down to £4,000. If you are considering making ISA subscriptions (up to £20,000 each in 2025/26) this tax year, then why not consider bringing these forward before the budget if this has not been actioned already.
EIS/ VCT Subscriptions – if you are considering some higher risk investments for up to 30% tax relief (plus potential Capitals Gains Tax deferral for EIS), then you may wish to consider making these investments before any budget announcements.
As before, taking panicked action, e.g. rushing to take tax free cash when there is no immediate need, has proven to be an ineffective move. Any actions should be discussed and explored thoroughly before making irreversible decisions that often have negative consequences for clients.
As always, personalised advice is key so if you want to speak to a member of the Financial Planning Team, please get in touch and we will be happy to discuss and explore any concerns or issues you may have.
David Bethell
David is a Financial Planning Consultant who has been with City Asset Management for over 12 years. He enjoys helping people meet their objectives through effective planning and his experience looking after elderly parents has given him a greater understanding of vulnerable clients and their longer-term planning needs. Before joining the firm, David worked in financial services roles at National Mutual, LV and Hornbuckle Mitchell. He is both a Chartered Financial Planner and a Fellow of the Personal Finance Society after achieving a range of qualifications covering pensions, investments, insurance, trust and tax planning, and long term care.
