Client update - 27th November 2025

The run-up to the 2025 Budget may have been characterised by greater conjecture about what would, or wouldn’t, be announced than in perhaps any other “pre-fiscal event” period in the UK’s modern political history. The last-minute leak of the Office for Budget Responsibility’s forecasts only added to the sense of anticipation of what would be revealed.

For better or for worse, the Chancellor has now delivered her statement, and the official “Red Book” of policy announcements (all 146 pages of it, in addition to supporting documentation) has been published on the Government’s website.

If anything was a foregone conclusion it was that, one way or another, taxes were going to rise overall. Speculation ahead of the budget related overwhelmingly to the matter of where the hikes would be targeted, rather than to whether they were coming. Now, at least, we know the facts. Digesting the full implications of the policy changes will take some time, but we are nevertheless pleased to share here the initial reactions of our new group Shackleton and our financial planning and investment experts to some of the most prominent revelations.

The obsession of the labour government with equality was the over-riding message, yet the chancellor remains confused, in my humble opinion. A higher minimum wage will probably mean less new employees hired as businesses seek to manage costs, rather than the escape from poverty that she promises, and we would all support. This feels quite like the increase in employers NI last year – that wouldn’t be passed on to staff via lower bonuses – would it? Surely not. The removal of the two-child benefit cap is a nod to her labour back benchers as much as to helping with poverty. And finally, I smell something a little fishy. Income tax thresholds frozen past the next election date? This looks to me like early stage electioneering and an opportunity to roll back on these tax rises as they seek re-election in three years’ time. Perhaps I am being cynical, but will the benefits to the economy of these tax rises ever materialise?

As I write markets are marginally higher, and we will continue to digest the news and monitor reactions, but for now, do have a good weekend.