Freezing income tax thresholds
The freeze on income tax thresholds will continue into 2030, meaning more UK workers will be pulled into higher tax brackets as wages rise with inflation. Estimates suggest hundreds of thousands of people will pay more tax overall, reducing real take-home pay even when gross salaries increase.
Retail gets a breather, but large stores may yet pay more
The Budget reduces business rates for more than 750,000 small and medium-sized retail, hospitality and leisure businesses — a welcome boost for high-street shops battling inflation and slower consumer spending. But it’s not a win for everyone. Larger retailers with high-value properties could face increased bills under the updated rates system, with additional costs likely to pass through to shoppers. Time to start collecting Tesco coupons again.
Tariffs! Tariffs! UK tariffs!
From 2026, the UK will scrap the £135 “low-value import exemption,” meaning even cheap parcels from overseas will face VAT or customs charges. The move should raise around £500m a year and offer protection to local retailers who struggle to compete with ultra-low-cost imports. But it also means fewer bargains for consumers — and a little extra inflation pressure.
Budget 2025 bets on startups
The Autumn Budget expands tax-efficient schemes aimed at high-growth companies. EMI share-option rules have been relaxed, making it easier for employees to receive equity without punitive tax bills. Investment schemes such as EIS and VCT have also been strengthened, making fundraising easier for startups and scaleups. For early-stage founders, the message is clear: conditions for launching and growing a business just improved.
To round it off
Rachel Reeves’s 2025 Autumn Budget may leave many households facing tighter finances, but it also funnels meaningful support toward the smaller businesses that keep the UK economy moving. Together with new incentives for startups, the package could help revive high streets and position the UK more competitively in emerging sectors. If the measures land as intended, this Budget might be remembered not just for tax rises — but for planting seeds of long-term growth.