Autumn Budget 2025: financial advisers react 

Ahead of the Budget, Unbiased revealed that 57% of financial advisers lacked faith in the government’s economic policy agenda.  

Now that the policies have been announced, Unbiased has asked financial advisers on its platform for their thoughts on the Budget and what it means for people.  

Many advisers recognise the widespread impact of the upcoming changes.  

“Labour’s combined policies announced over their term so far have been the biggest change for savers and investors in a generation,” warns Finn Houlihan, chartered financial planner at AAF Financial.  

“Both people saving for retirement and people in retirement have been significantly affected, but good planning can ease the negative impact.”  

Here are other advisers’ responses to some of the key changes announced in the Autumn Budget.  

Income tax threshold freeze  

It was announced that income tax and national insurance (NI) thresholds will be frozen for three more years until the end of the 2030/31 tax year.  

Freezing tax thresholds is often called a ‘stealth tax,’ as it reduces workers’ take-home pay and moves more taxpayers into higher tax brackets.   

“Frozen tax thresholds continue to push more professionals into the 40% bracket, creating another effective tax rise as incomes struggle to keep pace with living costs,” comments Richard Ward, financial planning consultant at Quilter Financial Advisers.  

“With fewer genuine tax efficiencies available and more people being caught by higher rates, careful financial planning has never been more important to protect income and build long-term financial security.”  

Phil Anderson, managing director at Phil Anderson Financial Services, says the burden from the income tax threshold freeze will fall ‘disproportionately on low and middle-income households.’  

“Consumers should budget for gradually lower real take-home pay, check PAYE tax codes, and consider tax-efficient steps such as salary sacrifice pensions/benefits (while they can), maximising ISA allowances, and planning bonuses or overtime around band edges,” says Anderson.  

Salary sacrifice 

It was announced that pension contributions under ‘salary sacrifice’ will be capped at £2,000 each tax year from April 2029.   

Contributions of over £2,000 will still benefit from income tax relief, but they won’t benefit from NI savings.  

While many saw this move as a blow to retirement savers, advisers are looking at the positives and emphasising the need for good planning ahead of the changes.  

“Whilst I may have preferred to see changes to the income tax brackets, overall, I don’t think the Budget leaves too much that can’t still be planned around,” comments Luke Turner, managing director at Toro Wealth Planning.  

“That income tax relief remains on pension contributions is hugely promising, and the added NI shouldn't put clients off keeping pensions as an important part of retirement planning beyond April 2029.”  

Marco Chabbi, chartered financial planner at Advanta Wealth, says that anyone earning over £39,000 will pay NI on pension contributions from April 2029, based on the 5% minimum auto-enrolment contribution.  

“Individuals and employers should review their arrangements now and look at whether changing contribution levels is appropriate,” comments Chabbi.  

Ward from Quilter stresses that there’s still a ‘crucial window’ to maximise pension funding, including using carry forward, while the current rules remain.   

ISA reform from April 2027  

During the Budget, chancellor Rachel Reeves announced a number of measures to encourage investment, including reducing the cash individual savings allowance (ISA) allowance from £20,000 to £12,000 for savers aged under 65 from April 2027.   

Investors can still stash up to £20,000 in a stocks and shares ISA or can split their £20,000 allowance between cash and stocks and shares (up to £12,000 in a cash ISA, while the remainder is invested in stocks and shares).  

“The reduction of the cash ISA allowance to £12,000 per year is an attempt to nudge more Britons towards investing in stocks and shares ISAs, which retain the £20,000 annual allowance,” says Matt Pike, financial adviser at Opal Financial Planning.  

He believes that the chancellor is aiming for the UK to become more like the US in terms of investing culture and is using the cash ISA limit cut to ‘alter this mindset’ and aim for more investment in UK stocks to ‘boost the sluggish growth prospects for the economy.’  

“Before investing in a stocks and shares ISA, you should seek appropriate financial advice to ensure you have the necessary risk appetite to invest your money,” comments Pike.   

Jeannie Boyle, director and chartered financial planner at EQ Investors, says that the cash ISA cut will ‘disproportionately impact women.’   

She flags that 11.5 million women have a cash ISA compared to 10.7 million men – and only 31% of women invest, while 44% of men do, leaving women worse off.   

“It’s important targeted support focuses on building investment confidence for this part of the population,” comments Boyle.   

Increased tax on assets (savings income, property, and dividends) 

Reeves announced a 2% increase in the dividend tax (the additional rate for dividend tax will remain unchanged), tax on rental income, and tax on savings income.  

This has been seen as a triple whammy; not only will most taxpayers pay tax on interest at a higher rate, but they are also more likely to save outside an ISA and be pushed into higher tax bands.  

Gary Jefferies, director at Panoramic Wealth, believes the tax changes are primarily to be levied against investment income.  

He warns that business owners who pay themselves via dividends will have to pay 2% more, adding more financial strain after employers’ NI contributions rose to 15% from April 2025.  

Landlords will also be affected, potentially affecting the UK rental market.   

“With many buy-to-let owners already stretched, this could lead to fewer rental properties being available,” comments Jefferies.  

James Carter, senior mortgage adviser at Independent James, says the additional rate of tax on property income produces a ‘further barrier to entry for new landlords.’ He believes it’ll reduce profits and, combined with the Renters Rights Bill, will see more landlords choose to sell up.   

Work with Unbiased  

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