Autumn Budget 2025: What Employers Need to Know

The Government’s Autumn Budget, delivered by Chancellor Rachel Reeves on 26 November 2025, brings a mix of immediate changes and long-term considerations for businesses, employees, and the self-employed.

With new tax measures affecting savings, property, dividends, and everyday business costs, now is the time for employers to review their policies, pay structures, and workforce planning.

Key Takeaways for Employers

National and Minimum Wage

From 1 April 2026, rates rise:

21+ (NLW): £12.71 (+4.1%)

18–20: £10.85 (+8.5%)

16–17 & Apprentices: £8.00 (+6%)

HR Tips:

Review all salaries, update budgets, check apprenticeship agreements, and audit pay structures to prevent compression.

Income Tax & National Insurance

Income tax thresholds frozen until 2030/31.

No changes to NI or VAT.

HR Tips:

Update payroll, communicate take-home pay implications, and review benefits packages for competitiveness.

Business Rates

Relief for 750,000 retail, hospitality, and leisure properties, funded by higher rates on properties worth £500,000+.

HR Tips:

Check if your properties qualify and assess financial impact for larger premises.

Apprenticeships & Youth Guarantee

Free training for under-25 apprentices at SMEs.

£820m funding for the Youth Guarantee for 18–21-year-olds.

HR Tips:

Identify apprentice roles, liaise with training providers, and consider Youth Guarantee recruitment opportunities.

Salary Sacrifice Changes

£2,000 cap on salary sacrifice contributions from 2029.

HR Tips:

Communicate future changes to staff, review reward packages, and plan long-term retention strategies.

Electric Vehicle Tax

From 2028: EVs 3p/mile, plug-in hybrids 1.5p/mile.

HR Tips:

Review company car policies versus car allowances and communicate options clearly to employees.

Final Thought

The Autumn Budget 2025 may feel complex, but with structured planning, it can also be an opportunity: to strengthen pay strategies, support employees, and attract new talent. Review policies, update payroll, communicate clearly, and plan ahead.

If you need support, BPHR is here to help turn these changes into practical HR actions.