Budget 2025 Announcement Notes and Implications
A Budget of Broken promises, the biggest leak since the PROFUMO scandal and a tax raid on earners, property, on landlords, on wealth creators, on EV owners who bought in good faith, drinkers, including milkshake drinkers, vapers, smokers, gamblers and on savers and pensions.
- Earners – 1.7m workers dragged into paying more tax by way of freezing income tax thresholds for three years, despite Reeves repeated promises to protect ordinary working people. A tax rise by stealth – a broken promise to nearly 2 million people
- Property and landlords – Landlords hit once again and now with rates of tax hiked by 2% for landlords across all income tax thresholds
- Wealth creators – up to an additional, new £7500 ANNUAL tax on their home and business owners having to pay a higher minimum wage – upped by up to 8% – to 2.4 million people
- EV owners who bought in good faith CHARGED PER MILE (congestion charge full discount removed too)
- Drinkers, including milkshake drinkers. Duty up
- Vapers. Duty up
- Smokers. Duty up
- Gamblers – online gambling duty doubles to 40%
- Savers – ISA tax relief cut from £20k to £12k a 40% cut costing you about £400 a year
- Business owners – cutting the relief on selling their business to employees by 50% – hardly an incentive for entrepreneurs
- Pensions – reducing the attractiveness of salary sacrifice schemes raising £4.7b from you. This will discourage pension saving
Positives:
- Fuel deal search app
- Fuel duty frozen
Property, investment and business specific:
- A new Mansion Tax payable via the council tax system – £2500 to £7500 additional levies based on home values above £2m and £5m (April 2028)
- A 2% increase in tax on basic and high rate earners for landlord income
- ISA tax threshold slashed by 40% from £20,000 to £12,000
- Salary Sacrifice Pension Payment Advantages reduced to £2000 only
- Business sales to employees 100% tax relief slashed to 50%
- Minimum wage paid by businesses to employees increased by up to 8%
