It was with dismay that I watched and listened to Rachel Reeves's 2025 Budget which was clearly and anti-worker and anti-business budget that concentrated on raising taxes on the private sector to fund every increasing benefits that will result in the opposite of growth.
We now learn that Tachel Reeves knew that the UK had a £4 billion surplus, and not the £22 billion deficit. See Daily Mail Article 28 Nov 2025.
Here are the anti-growth measures being implemented:
Freezing of Income Tax Thresholds
Income tax thresholds will remain frozen until 2028. This stealth tax will force more than 10 million workers into paying tax at a higher rate.
Freezing Employee National Insurance Thresholds
By freezing National Insurance thresholds, workers will effectively pay more National Insurance (tax) and will drag some employees into higher rate bands.
Freezing Employer National Insurance Thresholds
By freezing National Insurance thresholds, employers will incur higher costs, and will limit employment opportunities. Premier Inn have stated that the Budget will cost the company £40 million.
Freezing the Student Loan Repayment Threshold
By freezing the £25,000 student loan repayment threshold, graduates will pay a greater percentage of their income to repay their loans leaving less money for pensions, rent and house buying.
Salary Sacrifice Pensions Saving Raid
responsible workers are able to tax efficiently save more for their pension in retirement. Rachel Reeves has limited the savings employees can make. The Public Sector is immune from this unfair change.
Dividend Tax Increases
Investment in the stock market carries risks, but the funds allow companies to grow. By taxing dividends more, pensioners who rely on they investment dividends will suffer.
Property Income Tax Increases
Landlords will now need to pay even higher tax bills on rental income. This will lead to some landlords selling up or increasing rents to make up for their income shortfall.
Corporation Tax Changes
Changes is the calculation of Corporation Tax by restricting the write-off of specific investments will lead to greater tax obligations for companies.
Cash ISA Limit Frozen
By freezing the CASH ISA limit, workers will be able save less money tax efficiently for retirement.
Capital Gains Tax Relief Cut for Employee Share Purchase Schemes
Share ownership schemes allow employees to take a stake in and feel more part of the company they work for. The changes from April 2026 will result in lower employee benefits.
Increased Online Betting and Gambling Tax
Online gambling taxes will rise and this will result in higher changes on better accounts or lower odds as the companies seek to maintain their margins.
The New Taxi Tax
VAT will be added to taxi fares, and this will include Uber and Minicabs. This will result in a 20% increase in fares making taxis less desirable to driving, and forcing the elderly who are likely to need such taxis into paying more.
Cheap Import VAT and Duty surcharges
To minimise administrative expenses on cheap imports, VAT and Duty is not currently payable, but this (sensible) exemption is being cancelled and no doubt requiring more public sector employees to collect small amount of tax and duty.
Air Passenger Duty on Private Planes
Users of private jets will now have to pay air passenger duty; this will incur extra costs for business while providing little extra revenue to the Government after collection expenses are taken into account.
The New Milkshake Tax
The sugar tax is being extended to milkshakes and energy drinks. We have a superb Stoke Fruit Farm Shop on Hayling Island where local milkshakes may be purchased. This price increase is another attack on farmers.
Working From Home Tax Relief Scrapped
Employees have been able to claim back expenses that were wholly, necessarily and exclusively incurred in support of their employment. However, home workers will now no longer be able to claim back such business expense.
Inheritance Tax Thresholds Remain Frozen
The £325,000 Inheritance Tax Threshold will remain frozen until at least 2030. With the Government inflating the economy and house prices, this will mean even modest houses will become liable for the 40% tax.
New Electric Vehicle (EV) Tax
EVs typically cost at least £10,000 more than petrol cars, yielding the Government at least £10,000 extra VAT while not applying VED to EVs to balance the cost. However, the Government has now applied £195 PA VED for EVs, with an increase to £200 from 2026. Additionally, the Budget applied 3p/mile for EVs and 1.5p/mile for Hybrids. The effect of these charges will harm the take up of EVs and is a betrayal of trust to EV owners.
Beer Duty Changes
Beer duty changes will mean the price of a pint will increase at your local pub.