#autumnbudget2025 — Public Fediverse posts on home.social

Editor @[email protected] · 2025-11-26 · 17:28 UTC

Budget 2025: New pension savings tax could cost workers more, experts warn

Workers could end up paying more to save for their retirement after the Chancellor confirmed a new pension savings tax in the Autumn Budget. From April 2029, anyone putting more than £2,000 a year into their pension through salary sacrifice will have to pay National Insurance contributions on the extra amount. National Insurance is the tax that funds state pensions and benefits, meaning workers will see less take‑home pay if they save above the cap.

The Treasury says the measure is designed to raise money as part of wider tax reforms. But pensions experts, consumer groups and campaigners warn it risks discouraging people from saving at a time when many households are already struggling with rising costs.

“Unpopular and disincentivising”

Salary sacrifice has been one of the simplest ways for workers to boost their pension pots, with both employees and employers saving on National Insurance.

Maike Currie, VP Personal Finance at PensionBee, said the change could undermine confidence in workplace pensions:

“Salary sacrifice is one of the most efficient ways for employees to save more for their future. Limiting the amount that can be contributed in this way is an unpopular move, disincentivising companies who provide workplace pensions and sending the wrong message to millions of basic rate taxpayers trying to save.”

Currie added that the government’s decision comes at a time when households are already under pressure, and that confidence in long‑term saving is vital to meeting retirement needs.

Industry and consumer concerns

Other industry figures echoed those concerns. Richard Knight, head of pensions at Burges Salmon, said the change “will hit employees who are trying to save responsibly” and adds complexity for employers, particularly smaller businesses.

Pensions UK, a national advocacy group, warned the cap could worsen Britain’s retirement savings gap. Executive Director Zoe Alexander said:

“Over half of savers are already on course to fall short of retirement income targets. Adding new costs to salary sacrifice risks widening that gap.”

Consumer campaigners pointed out that while the state pension will rise by 4.8% next April, frozen tax thresholds until 2031 mean more workers will be dragged into higher bands, reducing take‑home pay and pension affordability.

Treasury forecasts and government aims

The government argues the pension savings tax is necessary to protect revenues as more people use salary sacrifice to boost their pensions. The Office for Budget Responsibility (OBR) estimates the change will raise around £4.7 billion by 2031, money the Treasury says will help fund public services.

But analysts describe it as a “stealth tax,” warning that the measure will not only affect higher earners but also ordinary workers who try to save more than the £2,000 limit. Employers, too, will face higher National Insurance bills, reducing the incentive to offer generous workplace schemes. Critics say this risks undermining the very system designed to encourage long‑term saving.

What it means for savers

For employees, the change means salary sacrifice will remain in place, but its benefits will be capped. Anyone saving more than £2,000 a year through this route will see extra National Insurance taken from their pay packet, leaving them with less money each month.

Campaigners warn this could discourage workers from putting aside more for retirement, widening Britain’s savings gap. With Britain already facing a shortfall in pension provision, experts say stability and clear incentives are essential if the government wants people to keep saving for the future.

Related stories from Swansea Bay News

Autumn Budget 2025: Westminster leak, Welsh impact
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Autumn Budget 2025: Welsh parties clash over Reeves’s plans
Labour hails child poverty measures, Plaid warns Wales is shortchanged, Conservatives call it a “circus,” Reform and Lib Dems add criticism.

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Tractors roll into Westminster as farmers protest Budget’s “family farm tax”
Farmers drove tractors into Westminster to protest inheritance tax reforms, warning of lasting damage to Welsh family farms.

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#autumnbudget2025 #budget #money #nationalinsurance #ni #nic

Editor @[email protected] · 2025-11-26 · 16:43 UTC

Tractors roll into Westminster as farmers protest Budget’s “family farm tax”

Farmers brought rush hour traffic to a standstill in Westminster on Wednesday, defying a police ban on agricultural vehicles to protest against the UK Government’s Autumn Budget and its proposed inheritance tax reforms.

Dozens of tractors entered central London from early morning, with signs reading “Starmer farmer harmer” and “rural communities betrayed by Labour.” The protest, organised under the banner Farmers to London: Budget Day, saw vehicles converge on Parliament Square and Whitehall as Chancellor Rachel Reeves delivered her statement in the Commons.

A protester’s tractor outside HM Treasury during the Budget Day demonstration, calling for the scrapping of inheritance tax reforms.
(Image: Gareth Wyn Jones)A decorated protest tractor outside Parliament, calling for political change and backing British farmers.
(Image: Gareth Wyn Jones)Tractors gather outside Parliament with signs urging support for farmers and food producers.

The Metropolitan Police confirmed that several arrests were made after protesters breached conditions banning tractors from entering the area. At least 20 vehicles were stopped in Richmond and Westminster, but many reached the heart of government, where demonstrators called for the proposed “family farm tax” to be scrapped.

Journalist Toby Young described the protest as a “furious” response to Budget plans that would “force many to sell up.”

Ian Rickman, President of the Farmers’ Union of Wales, stands outside HM Treasury on Budget Day, calling for urgent reform of inheritance tax to protect Welsh family farms.
(Image: FUW)

FUW: “Step in the right direction, but not enough”

The Farmers’ Union of Wales (FUW) said the Budget offered only a partial concession to Welsh family farms, with damaging inheritance tax reforms still set to come into force next April.

FUW President Ian Rickman welcomed the Chancellor’s decision to make the proposed relief for the first £1 million of agricultural and business assets transferable between spouses — a measure the Union had repeatedly called for.

“This is a step in the right direction, and one that will help ease the challenges of succession planning for many farming families,” said Rickman.
“It is also encouraging to note that the lifetime gifting rules remain unchanged — a mechanism the Union had urged the Treasury to preserve.”

However, Rickman warned that the wider reforms still represent an existential threat to Welsh family farms, risking unaffordable tax bills for those seeking to inherit and continue the family business.

“The Chancellor’s decision to press ahead with the government’s broader proposals for inheritance tax reform remains deeply disappointing, if unsurprising. These changes still risk causing lasting damage to rural communities.”

The FUW said it would continue lobbying MPs across all parties to support amendments to the Budget that would “ensure family farms can be passed on with confidence to the next generation.”

Gareth Wyn Jones: “We will not be silenced”

Welsh hill farmer and broadcaster Gareth Wyn Jones joined the protest in Westminster, sharing footage from Parliament Square and Trafalgar Square on social media.

In one video, he said:

“We’re here to stand up for our communities, our families, and our future. This Budget is a betrayal of everything rural Wales stands for.”

Jones also posted images of tractors lined up outside HM Treasury and called on MPs to “listen to the countryside before it’s too late.”

“We will not be silenced. Family farms are the backbone of Wales — and we’re not going anywhere.”

His posts were widely shared across farming networks and drew support from rural campaigners across the UK.

A protest tractor lists political figures on its “naughty list” during the Budget Day demonstration in Westminster.A protest tractor calls for fair treatment of British farmers, criticising import policies and Westminster decisions.Tractors enter central London in convoy during the Budget Day protest, escorted by police vehicles.

For full coverage of the Autumn Budget 2025 and its impact on Wales, read our explainer here.

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#autumnbudget2025 #budget #chancellor #farmers #farmersunionofwales #farming

Editor @[email protected] · 2025-11-26 · 15:43 UTC

Autumn Budget 2025: Westminster leak, Welsh impact

A Budget delivered in chaos

Rachel Reeves rose to deliver her Autumn Budget in the Commons — but the drama had already begun. The Office for Budget Responsibility (OBR) had accidentally published its forecasts online 40 minutes before she spoke, leaving MPs scrolling through graphs on their phones as the Chancellor tried to set out her plans. Treasury minister Torsten Bell, the newly‑elected MP for Swansea West, was seen passing his mobile to Reeves as she scribbled notes onto her speech.

BBC economics editor Faisal Islam called the leak “wild,” describing it as “history of the wrong sort” and noting that all the market‑critical fiscal numbers were out in the open before Reeves even stood up.

The deputy speaker, Nusrat Ghani, had already admonished ministers for the sheer volume of leaks and pre‑announcements surrounding the Budget, suggesting the government may have breached the ministerial code even before the OBR error.

Conservative leader Kemi Badenoch seized on the chaos, branding the whole episode a “circus” and accusing Reeves of becoming “the first chancellor to release the whole Budget ahead of time.”

The OBR has promised to explain how the mistake happened at a press conference later in the afternoon, where officials are expected to face tough questions about why their report was published before the Budget was even public.

Tax thresholds frozen until 2031

After the drama over leaks, Reeves confirmed one of the most contentious measures: income tax and National Insurance thresholds will remain frozen until 2031. “I know that maintaining these thresholds is a decision that will affect working people,” she told MPs. The OBR estimates 780,000 more people will be pulled into paying income tax by 2029–30. Badenoch accused her of breaking promises, saying Reeves had “sworn last year it was a one‑off.”

Families see benefit cap scrapped

In contrast, Reeves announced the scrapping of the two‑child benefit cap from April 2026, saying every child “deserves an equal chance.” Welsh Labour highlighted that 69,000 children in Wales will benefit, with First Minister Eluned Morgan welcoming the change as a step to tackle child poverty.

Pensions and savings face new limits

Turning to pensions, Reeves said she would cap salary sacrifice contributions at £2,000 from 2029, describing it as a “pragmatic step.” PensionBee warned the change “punishes hard‑working savers” and risks discouraging employers from supporting workplace schemes.

Savings products were also reshaped. From 2027, under‑65s will only be able to put £12,000 into cash ISAs, with the rest reserved for investments. Over‑65s will retain the full £20,000 cash allowance. Industry experts criticised the move as “needless complexity” that could penalise groups who rely more heavily on cash savings.

Motoring and property charges

Drivers will face new costs too. Electric vehicles will be subject to a mileage‑based excise duty from 2028 — 3p per mile for battery cars and 1.5p for plug‑in hybrids. Disabled drivers using the Motability scheme will find luxury models removed, with Reeves saying the scheme must return “to its original purpose.”

Property owners at the top end of the market will also pay more. From 2028, homes worth over £2m will face an annual charge of £2,500, rising to £7,500 for those above £5m. Reeves said the measure would raise £400m by 2031 and affect fewer than 1% of properties.

Energy bills, gambling and devolved funding

Household energy bills will fall by around £150 from April as green levies are scrapped. Gambling taxes will rise sharply, with remote gaming duty increasing from 21% to 40% and online betting duty from 15% to 25%. Bingo duty will be abolished from 2026.

Wales will receive an additional £505m in Barnett consequentials and £425m in fiscal flexibilities, giving the Welsh Government almost £1bn in extra spending power. Ministers in Cardiff will decide how to allocate this funding across health, education and infrastructure.

What happens next

The immediate changes — higher minimum wages, pension uprating, and the end of the two‑child cap — will be felt from April 2026. ISA reforms and energy bill savings arrive in 2027, while the mansion tax and EV mileage duty begin in 2028. The salary sacrifice cap takes effect in 2029, and tax thresholds remain frozen until 2031.

For households in South West Wales, the Budget brings both near‑term changes to pay packets and benefits, and longer‑term reforms to pensions, savings and motoring costs. England‑only measures such as rail fare and prescription freezes will not apply, with the Welsh Government deciding how to spend its share of the additional funding.

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