The Government has announced this morning that Chancellor of the Exchequer Rachel Reeves will deliver the UK Budget on Wednesday 26th November 2025. Advisers and markets alike will be watching closely, with expectations of significant tax measures as the government tries to balance its economic growth ambitions with fiscal discipline and mounting financial pressures. Yesterday, the cost of UK govt borrowing reached its highest level for 27 years and sterling weakened too, although other countries also experienced similar moves.
Reeves under pressure to raise revenue
This year’s Budget is shaping up to be one of the most significant in recent memory. Reeves faces mounting pressure over her spending plans and the need to raise revenue, with speculation growing that tax changes will be on the table.
In a video message released alongside the Treasury announcement, Reeves said:
“Britain’s economy isn’t broken. But I know it’s not working well enough for working people… Bills are high. Getting ahead feels tougher. You put more in, get less out. That has to change.”
Focus on growth and fiscal rules
Reeves pointed to progress made over the past year, highlighting higher minimum wages, investment in infrastructure and reforms to planning. However, she acknowledged that cost-of-living pressures remain, and that the government must tread carefully to keep borrowing and inflation under control.
She emphasised:
“We must bring inflation and borrowing costs down by keeping a tight grip on day-to-day spending through our non-negotiable fiscal rules. It’s only by doing this can we afford to do the things we want to do.”
Implications for advisers and clients
For advisers, the forthcoming Budget could bring important changes to the tax landscape, with property taxation, inheritance and pensions all appearing to be under scrutiny. With the Chancellor signalling both reform and investment, planning for clients’ long-term financial wellbeing may require swift adjustments once the details are announced.
Reeves concluded her message by underlining her priorities:
“More pounds in your pocket. An NHS there when you need it. Opportunity for all. Those are my priorities. The priorities of the British people. And it is what I am determined to deliver.”
Commenting, Rebecca Williams, Divisional Lead of Financial Planning at Rathbones, says: “With the Budget now set for 26 November, it feels like a rather late fiscal event. But with public finances stretched thin, the delay underlines that ministers are in full-on thinking mode ahead of what is shaping up to be one of the most consequential Budgets in a generation. It seems inevitable that some form of tax rises – stealth or otherwise – will be unveiled as the government looks to balance the books.
“For households, the long wait only prolongs uncertainty at a time when many are still grappling with the cost-of-living squeeze. Markets and savers alike dislike being left in the dark, and it is little wonder we’ve seen a surge in queries around pensions taxation, estate planning, and whether it remains worthwhile to hold on to buy-to-let properties amid growing speculation.
“But while it is sensible to keep an ear to the ground, it is important to remember that headline announcements grab the spotlight while quieter changes – such as freezes to allowances – can be just as impactful over time. Whatever the shape of the Chancellor’s statement, it remains good practice to avoid knee-jerk reactions based on rumour.
“This period of waiting can be used productively: to review budgets, shore up financial resilience, and stress-test long-term plans. Above all, good financial decisions should be grounded in sound advice and verified information. Making the most of tax-free allowances – such as ISAs and pensions – remains a prudent move whatever the future may bring. Budgets come and go, but the principles of sensible financial planning stand the test of time.”
Commenting on the announcement, David Brooks, Head of Policy at leading independent consultancy Broadstone said: “Looks like we’ll have a late budget this year as the Chancellor gives herself time to come up with a plan to get the economy firing and reduce government debt.
“Even though Torsten Bell is part of the drafting team, it still seems unlikely that pensions will be able to give the quick wins needed in November’s Budget. However, this government has got form already in making decisions for the longer term, for example, pushing through pension and investment reforms.
“To this end, the rumours around tax-free cash amendments feel too reactionary to be on the drawing board. However, the long-proposed pensions tax relief changes look likely to be an attractive fiscal lever for the Chancellor.
“This would need to come with a lengthy technical consultation but changing the bonus for saving into a pension to a flat rate could save the government some money and also boost pension savings for the lower rate taxpayers.
“Of course, this would drive concerns around intergenerational unfairness but calls to introduce NI contributions – of some level – for current pensioners could go some way to balancing this by asking wealthier pensioners to shoulder some of the country’s current burden, especially on the NHS.
“However, as always, we won’t know anything for certain until the day, so it’s best to be wary of speculation and avoid making any life changing decisions on rumours – we’ve got a long run up this year. Good luck!”
