Chancellor Rachel Reeves is set to deliver a pivotal Budget statement today, outlining Labour's plan to stabilise the nation's finances and deliver on its promise of change.
Key Tax Measures and Fiscal Strategy
The statement is scheduled for 12.30pm on Wednesday, 26th November 2025. While a significant income tax rise has been abandoned, the Treasury will rely heavily on 'fiscal drag' by extending the freeze on income tax thresholds, a move that pulls more people into higher tax brackets as their earnings increase.
Several direct tax changes are anticipated. These include a reduction to the annual cash ISA allowance and the introduction of a new 'mansion tax' on properties valued over £2 million. In a bid to promote public health, the existing sugar tax will be expanded to cover pre-packaged milkshakes and lattes.
Electric Vehicles and Cost of Living Support
In a significant shift for motorists, the government is expected to announce a 3p per mile tax for electric vehicles. This will be partially balanced by the retention of the 5p fuel duty cut and new funding for EV grants and public charging points.
To support households, the Budget will contain a suite of cost of living measures. These are set to include a freeze on rail fares and NHS prescription costs, an increase to the minimum wage, and the scrapping of the controversial two-child limit for child tax credit and universal credit.
A Budget for Change
This first major fiscal event from the Labour government aims to chart a new course. By combining revenue-raising measures with targeted support, Rachel Reeves hopes to balance the books while protecting those most affected by the rising cost of living. The decisions announced today will have profound implications for taxpayers, businesses, and public services for years to come.
