Budget Outcomes

As for the longer-term implications of last November’s Budget, this was a tax-raising Budget (supposedly targeting those with the broadest shoulders); in order to help meet the increased expenditure needs for Welfare, the State Pension, and Health.

These elements now account for at least 49p of your Tax £, with a further 10p going to fund the interest payments for the National Debt.

The Chancellor did also factor in a headroom of £22bn for any unforeseen circumstances, up from the £10bn safety net in the March 2025 report from the Office for Budget Responsibility (OBR).

In terms of growth, the OBR, set out that the economy would grow annually by 1.5%, on average, across the 2026-29 period.

Also, the OBR expects inflation to be around 2.5% in 2026, before returning to the Bank of England’s 2% target in 2027, a year later than they forecast back in March 2025.
(Sources: HM Treasury; OBR, November 2025)

Key Budget announcements

Here are some of the main talking points that may affect you as a tax-paying individual, and as someone that owns (or is looking to own) a property. All are applicable to England, and it varies for the rest of the UK.

Income Tax & National Insurance (NI)

The thresholds for both have been frozen for a few more years, until April 2031. This is what’s called a ‘fiscal drag’, or ‘stealth tax’.

The impact of this is that between 2022-23 and 2030-31, 5.2m additional individuals will have been brought into paying income tax. And 4.8m more will have moved to the higher rate of tax, and 600,000 more onto the additional rate.

The consequence of this, is that around £177bn more is expected to be raised from income tax in the 2030-31 year vs. 2022-23!

Salary Sacrifice

The amount that people can ‘sacrifice’ from their salary – thereby avoiding NI on pension contributions – will be capped at £2,000 a year from 2029. At the moment there is no limit.

Dividend Income

From April 2026, there will be a 2% rise to the ordinary and upper tax rates on dividend income.

Cash ISAs

The amount the under-65s can put into a Cash ISA (Individual Savings Account) will be capped at £12,000 a year, with the rest of the £20,000 annual allowance reserved for investments. It’s applicable from April 2027.

High-Value properties

From 2028, homes in England, worth more than £2m, will face a Council Tax surcharge of between £2,500 to £7,500, following a revaluation of bands F, G, and H.

Landlords

The tax charged on rental income will increase by 2%, from April 2027.

Two-Child Benefit Cap

This will be removed from April 2026, enabling those with three or more children, for whom it’s applicable, to also receive universal or child tax credit for these children too, if they were born after 6 April 2017. It’s said that this will bring 450,000 children out of poverty.

Transport

The 5p temporary cut in fuel duty on petrol and diesel will be extended again, until September 2026. Also, there will be a new mileage-based tax for electric vehicles, and plug-in hybrid cars to be introduced from 2028.

Inheritance Tax (IHT)

Like Income Tax and NI, the IHT threshold has also been frozen until 2031, which will bring more people into its net.

State Pension

This will go up by 4.8% from April 2026 which is more than the current rate of inflation, due to the ‘triple lock’ policy.

How the Taxpayer’s £ is spent

In fact, whatever your situation, we’d fully assess the suitability of the options on offer. And you can be reassured that we operate in this sector day-in day-out, plus have the qualifications and expertise to deliver advice that meets your needs.

Your property may be repossessed if you do not keep up repayments on your mortgage.