Pre-budget speech and your tax position?
What did the Chanellor’s pre-budget speech mean for your tax position as we head through the final months of 2025?
The recent speech by Rachel Reeves set the tone for what is likely to be a significant shift in the Government’s approach to public finances, taxation, and business policy. The message delivered 4 November 2025 was clear. The public finances are tight, economic growth remains modest, and changes are coming to the tax system. The intention is to balance the need to invest in public services with the need to bring down borrowing over time.
For many business owners, company directors, landlords, longer term investors, and high earners, this means that the next Budget cycle could be particularly important. There is a growing expectation that tax rises will feature in order to help stabilise the economy. The exact timing and scope of any changes remains to be confirmed, but it is sensible to begin thinking ahead now rather than reacting later when options may be more limited.
In this post we take a look at the Chancellor’s pre-budget speech and the impact this might have on your tax position. This is a brief overview of the key themes from the speech and sets out actions worth considering. As always this article comes with our usual disclaimers. We do not know what the Chancellor will announce in the Budget at the end of November and we always recommend that you seek professional advice before acting or refraining from taking any action.
If you would like to speak to a member of RPGCC’s team regarding the pre-budget speech, or indeed any area of tax planning or compliance, please talk to us, a member of our team is waiting to help.
Pre-Budget speech – it’s true, tax rises are being actively considered
Reeves made clear that raising taxes is on the table if it avoids deep cuts to public services. There has been speculation in the past about aligning Capital Gains Tax more closely with Income Tax rates, reviewing business reliefs, and adjusting the thresholds for higher rate taxation. While no detailed proposals were confirmed in the speech, the direction of intent is increasingly visible.
This does not necessarily mean dramatic overnight changes. However, it does signal that planning ahead will be valuable, especially for those:
- Who are considering selling a business, property, or investment in the next few years
- With significant unrealised gains in shares, second properties, or investment portfolios
- Receiving income near the higher or additional rate thresholds
- Drawing dividends from a company or balancing salary and dividend extraction strategies
It is worth reviewing your present position and considering whether any transactions or restructures would ideally be undertaken before any possible new rules are announced.
Pre-budget speech, a stronger focus on long-term investment growth
In her pre-budget speech, the Chancellor stated a commitment to improving the UK’s long-term productivity and investment performance. A key message in the speech was that stronger economic growth is the best route to improving living standards while supporting public services. To do this, the Government signalled that it wants to encourage investment in infrastructure, innovation, skills and business development.
For business owners, this could mean opportunities in:
- Regional investment zones
- Public and private partnership funding
- Innovation grants and research relief areas
- Support for training and technology adoption
However, reform of existing reliefs, including those for business investment, remains possible. It would be wise to ensure that any planned investments or claims under existing relief schemes are properly evidenced and timed.
Pre-budget speech, public spending pressures remain high
In her pre-budget speech Rachel Reeves highlighted that demand on public services is considerable. The Government is trying to ensure that departments are funded to deliver essential services, but also that spending does not rise beyond a level that the economy can sustain. For businesses, this may influence payroll planning, pension contributions, employment support schemes, and sector-specific grants or subsidies.
For individuals, pressure on services may mean continued emphasis on personal planning. This could include:
- Pension contribution reviews
- Reviewing retirement timelines
- Ensuring wealth transfer and estate plans remain tax-efficient
- Planning for long-term care costs where relevant
As the population ages and inflationary pressures continue, private planning becomes more important.
Regulatory reform remains on the agenda
Although it was not the central theme of this particular pre-budget speech, the Government has previously indicated a wish to reduce regulatory complexity for businesses, particularly in finance and growth sectors. This could eventually help simplify reporting and compliance burdens for UK businesses. It may also create opportunities for firms that are prepared to invest in improved systems and financial reporting. A direct impact on businesses might mean that there is a growing demand for:
- Clear financial modelling and forecasting
- Scenario analysis for business resilience
- Advisory support on improving profitability
- Tax planning related to business succession, growth, and exit strategies
If your business has not reviewed its financial planning, management reporting, or cash flow controls in the past year, now is a sensible time to do this.
Immediate actions to consider as a result of the pre-budget speech
Without waiting for detailed fiscal announcements, there are several practical reviews that may be beneficial to businesses including:
- Review your income extraction strategy if you operate through a company
- Review investment portfolios to consider the timing of disposals
- Assess whether any business or property sales are likely in the next 18 to 36 months, and model the tax outcomes under different possible rates
- Ensure pension contributions are up to date and consider any potential benefits of increasing contributions in the current tax year
- Consider revisiting estate planning, including the use of lifetime gifts and trust structures, especially where there are significant assets involved
- For businesses, update cash flow forecasts and stress test for interest rate, wage, and cost changes
These steps do not require taking irreversible action, but they place you in a much stronger position to respond when the Budget detail becomes clear.
How RPGCC can help with pre-budget speech planning
We are currently offering review sessions to help clients understand their present position and assess opportunities to plan effectively before changes are introduced. This includes:
- Personal tax planning reviews
- Business structure and profit extraction reviews
- Capital Gains planning for business and property owners
- Pension and retirement planning modelling
- Inheritance planning and intergenerational wealth structure reviews
If you feel that the next year could involve major financial decisions, it may be worth arranging a conversation now with a member of the RPGCC team. You can contact us on 020 7870 9050.
