Azets Update: Chancellor’s Pre-Budget speech: More questions than answers

While the Chancellor outlined broad priorities - protecting the NHS, reducing national debt, and easing the cost of living - she stopped short of detailing specific fiscal measures. Instead, she signalled that “tough but fair” decisions are coming, and that tax rises are likely inevitable to address a growing fiscal shortfall.

This has fuelled speculation that Labour may break its 2024 manifesto pledge not to raise income tax, VAT, or National Insurance for working people. Reeves refused to rule out increases to any of these taxes, stating only that the Budget would be guided by the government’s values of “fairness and opportunity”.

A speech that raises key questions

For businesses, the speech raises pressing concerns:

• Will income tax or VAT rise - and if so, who will bear the brunt?
• How will any changes affect consumer spending, investment appetite, and workforce costs?
• What does this mean for long-term planning, particularly for sectors already under pressure from inflation and interest rates?

The Chancellor’s emphasis on “context” rather than concrete policy has left many in limbo. While the intention may have been to prepare the ground for difficult decisions, the lack of specifics has instead created speculation and anxiety.

The need for certainty

What business leaders and individuals need most right now is certainty. In an environment already shaped by volatile supply chains, high borrowing costs, and geopolitical instability, the ability to plan with confidence is critical. Unfortunately, this speech has done little to provide that.

Instead, it has highlighted the scale of the challenge ahead - and the likelihood that the government will need to make politically difficult choices to meet its fiscal rules.

What should businesses and individuals do now?

While we await the full Budget on 26 November, now is the time to:

• Stress-test financial plans against potential tax increases or changes to reliefs.
• Review employment structures, particularly where salary sacrifice or pension contributions may be affected.
• Engage with advisers to model different scenarios and prepare for a range of outcomes.
• Stay informed - the next few weeks will be critical in shaping the fiscal and regulatory landscape for 2026 and beyond.

We’re here to help

Navigating fiscal uncertainty is never easy - but you don’t have to do it alone. Our team is closely monitoring developments and can help you assess the potential impact of the Autumn Budget on your business or personal finances.

Whether you’re concerned about tax planning, compliance, or strategic decision-making, we’re ready to support you. Preparing now is key to navigating the next few months with certainty and confidence, and we’re here to help.

Please get in touch with Lyn Newbury, lyn.newbury@azets.co.uk or 01233 629255.