UK Autumn Budget 2025: What Will Get More Expensive After the Budget?

The Autumn Budget 2025, set to be delivered by Chancellor Rachel Reeves, is expected to introduce a series of tax increases and new charges that will raise the cost of living for many Britons.

After months of speculation and what the Speaker of the House of Commons labelled a "hokey cokey budget" of leaks, the financial plans are becoming clear. From property and transport to everyday goods, here’s a breakdown of what is predicted to become more expensive.

Property and Housing Costs Set to Rise

Both homeowners and renters may face extra financial pressure due to several new property measures. By focusing on high-value homes and rental income, the government could trigger wider changes across the housing market.

Important changes likely to be introduced include:

• Mansion Tax: A yearly levy on homes worth more than £2 million, with owners possibly paying about £4,500 extra.
• Council Tax Revaluation: Homes in bands F, G, and H may be reassessed, which is expected to increase council tax bills.
• Landlord NI Charges: National Insurance on rental income could be introduced, and landlords may raise rents to cover it.

Travel and Transport to Become Pricier

The budget aims to modernise the tax system for transportation, particularly as electric vehicles become more common. This means both public and private transport costs are set to increase.

The anticipated hikes are:

• Taxi Tax: A flat VAT charge on all private hire vehicle bookings, raising fares for passengers.
• EV Charge: A new "pay-per-mile" tax for electric vehicle drivers to replace lost fuel duty revenue.
• Fuel Duty: Fuel costs for petrol and diesel users could rise by up to 3p per litre.

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Everyday Goods and Leisure Activities

Daily essentials and entertainment costs are getting attention as well. The government is widening existing taxes and adding new ones that will directly hit consumer spending.

Shoppers and tourists should expect:

• Milkshake Tax: An extension of the sugar tax to include sugary milk-based drinks, increasing their price.
• Tourism Tax: New powers for regional mayors to add a tourist levy on overnight accommodation.
• Gambling Tax: Increases in taxes for online betting and high-stakes gambling firms.

Pensions, Savings, and Income

Long-term financial planning will not be immune from the changes. The government is looking at pensions and savings as areas for reform, which could reduce tax relief for many.

The main predictions are:

• Pension Cap: A £2,000 yearly limit on tax-free pension salary sacrifices, with NI charges applied to anything above that.
• Cash ISA Limit: The annual tax-free savings cap will drop from £20,000 to £12,000.
• Fiscal Drag: Income tax thresholds will stay frozen, pushing more people into higher tax bands as their salaries increase.

Also Read: UK Autumn Budget 2025: What Will Get Cheaper After the Budget?