Chancellor Rachel Reeves has delivered her second Budget, unveiling a wide-ranging package of tax, spending and regulatory measures shaped by weeks of leaks — and an accidental early publication of the OBR’s official forecasts.
Here is a comprehensive overview of the main changes affecting households, businesses and the wider economy.
Personal taxation
Reeves confirmed that income tax and National Insurance thresholds will be frozen until 2031, extending the existing freeze by an additional three years. The move will gradually pull more earners into higher tax bands as wages rise.
The annual cash ISA allowance for under-65s will be capped at £12,000, with the remaining portion of the £20,000 limit available only for investment ISAs. Dividend tax rates will rise by two percentage points from April, while all tax rates on savings income will increase from 2027.
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