Chancellor Rachel Reeves is set to deliver one of the most anticipated Autumn Budgets in recent memory today, outlining sweeping tax changes and spending decisions that could define Labour's economic agenda for years to come.
When and How to Watch the Budget Announcement
Rachel Reeves will address the House of Commons at approximately 12:30pm today, following Prime Minister's Questions. The Chancellor's statement is expected to last around one hour, with opposition leader Kemi Badenoch delivering an immediate response afterwards.
For those wanting to watch live, the Budget speech will be broadcast across major news channels and available via live streaming services. The government must subsequently introduce a Finance Bill to enact the policies, with Royal Assent typically following several months later - last year's Autumn Budget received approval in March 2025.
Major Tax Changes Expected in the Budget
The Treasury faces significant pressure to raise approximately £22 billion to meet the Chancellor's self-imposed fiscal rules, which include eliminating borrowing for day-to-day spending and reducing government debt as a share of national income by the end of this parliament.
Property taxes appear set for the most dramatic overhaul, with speculation mounting that stamp duty could be replaced entirely by a new property tax system. The Times has reported that capital gains tax may be extended to primary homes above certain value thresholds, despite Keir Starmer's pre-election guarantee that this wouldn't happen.
A potential 'mansion tax' targeting approximately 1.3 million families in higher-value property areas could raise around £600 million annually. Landlords may also face new National Insurance requirements if renting multiple properties or treating property investment as their primary occupation.
Income Tax, Pensions and Inheritance Changes
All eyes remain on whether Labour will break its manifesto commitment not to raise income tax, National Insurance or VAT. Recent weeks have seen mixed signals from the government, though a freeze on income tax thresholds until 2030 now appears likely, effectively creating a 'stealth tax' by pulling more people into higher tax brackets as wages increase.
Pension reforms could see restrictions on the 25% tax-free cash allowance available from age 55, while salary sacrifice pension contributions might be capped at £2,000 - a measure The Times suggests could generate £2 billion for the Treasury.
Inheritance tax changes announced last year are expected to be expanded, including imposing the tax on agricultural assets from April 2026 and including unused pension funds in estate valuations from April 2027.
Cost of Living Measures and Political Implications
The Chancellor has promised targeted action to address ongoing cost-of-living pressures, with potential measures including reducing VAT on energy bills from 5% or cutting regulatory costs for suppliers. There are strong indications the government may scrap the controversial two-child benefit cap, a move campaigners say could lift 350,000 children out of poverty.
However, Reeves has also indicated tougher welfare measures, including stripping benefits from young people who refuse job offers after 18 months of unemployment.
Politically, this Budget represents a crucial test for Labour, with recent YouGov polling showing 79% of Britons believe the economy is in poor condition and 77% criticise the government's economic management. Breaking manifesto pledges risks damaging public trust, while insufficient revenue-raising could force unpopular spending cuts on public services.
The Budget comes amid internal party challenges, including renewed calls for Andy Burnham to replace Starmer and new deputy leader Lucy Powell's admission that the government must do better to deliver the 'big change' voters demand.
