What the 2025 Autumn Budget Means for Your Money

The government’s Autumn Budget brings a series of changes that could affect savers, investors and households in the years ahead. At Stringer Mann Chartered Financial Planners we believe it helps to take a measured look at what has been announced, and how it might shape your own financial plans.

Key announcements

Frozen tax thresholds
Income Tax thresholds, including the personal allowance and the higher rate threshold, will remain frozen until at least 2031. As wages go up, more of your income may become taxable.

Changes to pension salary sacrifice
From April 2029, pension contributions made through salary sacrifice above £2,000 a year will no longer receive National Insurance relief. Contributions beyond this limit will be treated in the same way as normal pay. This may influence how some people structure their pension saving in future.

Higher tax on savings, dividends and property income
A 2 percentage point increase will apply to tax on savings interest, most dividend income and rental income. If you rely on income from assets, it may be helpful to review how these changes could affect your overall position.

Cash ISA allowance reduced
From April 2027, the annual Cash ISA allowance for those under 65 will fall from £20,000 to £12,000. The overall £20,000 ISA allowance remains, so you can still use other ISA types, such as Stocks and Shares.

State Pension increase confirmed
The new State Pension will rise by 4.8 per cent from April 2026 under the triple lock. This will offer some added support for pensioners managing rising living costs.

What this means in practice

These measures point towards the need for more active financial planning. A few things to keep in mind:

• If you hold significant savings, the reduced Cash ISA allowance and higher tax on interest may influence how you balance your cash and investments.
• Those making larger salary sacrifice pension contributions may need to revisit their approach once the new limit applies.
• Anyone receiving dividends or rental income may benefit from looking at how their assets are held and whether tax efficient wrappers are being used effectively.
• The State Pension rise is helpful, but remains only one part of a broader retirement plan.

Avoiding common pitfalls

Budget announcements can prompt quick reactions, but a little space to think is often wise:

• The 25 per cent tax free pension lump sum has not changed, despite speculation beforehand.
• Some measures, such as the salary sacrifice limit and Cash ISA reduction, do not take effect for several years, which allows time to prepare.
• Moving too heavily into cash can leave long term plans exposed to inflation.

Sensible next steps

• Review the mix of savings and investments you currently hold.
• If you contribute through salary sacrifice, consider whether future adjustments might be needed.
• Look carefully at assets that generate income and check the tax position.
• Keep long term objectives at the heart of any decisions.

A steady approach

Everyone’s situation is different, and changes in the Budget will matter more to some than others. A clear plan, reviewed regularly, still remains the best way to navigate shifting rules and maintain progress towards your goals.

If you would like to discuss any of the announcements made in the Budget further, please reach out and we’ll be delighted to help.

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief is generally dependent on individual circumstances.

Cash ISAs are not available through St. James's Place.

Although the content of the article was correct at the time of writing, the accuracy of the information should not be relied upon, as it may have been subject to subsequent tax, legislative or event changes.