Budget 2025: Key points at a glance

After months of speculation and predictions, the Budget was announced in the House of Commons on 26 November 2025. The Treasury has outlined multiple tax and additional financial changes that aim to raise £29 billion by 2029-30. The key points are summarised below:

Personal taxation

The National Insurance and income tax thresholds freeze continues for a further three years after 2028. Over time, this means that some taxpayers will be drawn into higher tax bands.

A 2% point rise¹ will be applied to dividend income from April 2026 and savings income from April 2027. These increases affect both ordinary and upper tax rates.

Property and housing

There will be council tax surcharges for properties in England worth more than £2 million, determined by a revaluation of homes in council tax bands F, G and H. The surcharges will be between £2,500 and £7,500¹ and they will come into force from April 2028.

There will be higher taxes for landlords, as rental income tax will increase by 2% points from April 2027.

Wages, pensions and benefits

From April 2026, basic and new state pensions will increase by 4.8%¹, taking the maximum from £230.25 to £241.30 per week.

There will also be an increase to the legal minimum wage for over-21s. From April 2026, a 4.1% rise will bring the minimum for over-21s up to £12.71 per hour. Meanwhile, the legal minimum wage for 18- to 20-year-olds will also increase, from £10 to £10.85 per hour.

The current cap on universal or child tax credit for a third or subsequent child will be removed from April 2026.

Household bills

The Treasury has also decided to remove green levies from energy bills so that they are paid through general taxation instead, estimating that this could save households around £88 per year on their energy bills.

Transport

From 2028, a new tax based on mileage will be introduced for both electric and plug-in hybrid vehicles.

The temporary fuel duty cut of 5p on petrol and diesel has been extended up to September 2026. Fuel duty will then start to rise over a six-month period.

There is good news for regular train users, as regulated rail fares will be frozen in 2026, which is the first time there has been a rail fare freeze since 1996.

Business taxes

Businesses face higher costs for paying employees, due to NI thresholds for employers being frozen until 2031.

Both the gaming and betting industries have been targeted for significant tax increases. Betting duty will rise from 15% to 25% from April 2027, while online casino betting tax duty will increase from 21% to 40%.

Summary

Low-income families, low paid workers and state pensioners are likely to benefit the most from the changes. Landlords, savers and middle earners who will be drawn into higher tax bands are set to lose out the most from the Budget changes.

Sources

1. https://www.bbc.co.uk/news/articles/cj4w44w42j5o

All the information in this article is correct as of the date of publishing. The opinions expressed in this publication are those of the authors Euxton Mortgage Market. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

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December 2025