Budget commentary can feel overwhelming. So, we’ll avoid repeating the familiar headlines about “we will all have to contribute”. The Chancellor’s phrase ultimately means higher taxes for most people.
The key question is, how does it impact you? That’s not something that a newspaper article or blog post can answer for you. Having a clear understanding of the facts is an important starting point for making informed decisions.
To help give you this foundation we have prepared an impartial overview.
We’d love to help you apply these insights, in the same way we do with our clients, as you pursue the goals that matter most.
What happened?
Chancellor of the Exchequer, Rachel Reeves, announced measures set to lift over 450,000 children out of poverty and address the cost-of-living crisis. Pensioners will also benefit from an increase to the State Pension in line with the earnings component of the Triple Lock.
Yet, these changes come at a cost. The continued freeze on various allowances means many people will pay more over time. Higher earners and those with significant property wealth will feel a greater impact.
As the Office of Budget Responsibility put it: “…the Budget delivers a frontloaded increase in spending of £9 billion and a backloaded increase in taxes of £26 billion.”
What’s our take on it?
As a Certified B-Corporation we see the world through our ‘Three P Lens’ - People, Planet, and Profit. With that perspective in mind, here are a few of the policy items that stood out as we reviewed the Budget text and supporting documents.
| People | Planet | Profit |
| Cost of living support – Freezing costs for rail, buses, and prescriptions. Extending the fuel duty cut – Increases to Universal Credit – Measures to address high energy bills | Energy security – Focus on secure, clean, and cheaper energy – Nuclear power now classified as ‘green’ – Oil and gas remain long-term features, with price control mechanisms | Going for growth – Encouraging growth forecast, but underlying productivity remains a concern – Investment in AI and initiatives to improve workforce participation – Empowerment of regional leaders to boost growth |
| Lifting children out of poverty – Removal of the two-child limit from Universal Credit – Related measures set to lift 450,000 children out of poverty | Electric vehicles (EVs) – Extensions to support for EV adoption including infrastructure – Introduction of pay-per-mile Electric Vehicle Excise Duty | Reducing national debt – c10% of public spending goes to interest on debt – Reducing borrowing, closing the budget deficit, and growing the economy will help |
| Funding life after work – Increased tax rates for passive income (savings, investments, property) and property wealth – Triple lock provides above-inflation increase to state pensioners – No change to Pension Commencement Lump Sums, but Salary Sacrifice contributions will be capped | Minimal planet focus – Funding for land remediation and river clean-up projects – Limited other measures seeking to protect our planet | Business incentives – Support for scaling up businesses – Reforms to planning processes for housing and infrastructure delivery – Permanent lower business rates for retail, hospitality, and leisure sectors |
How should you respond?
The Budget will affect everyone differently, but life is about more than money and taxes: money matters, but life matters more. Our Budget overview offers an impartial summary of the key changes.
If you’d like to talk through what these changes mean for you, or simply want a fresh perspective, speak to us at Paradigm Norton. We’re here to help you make sense of the headlines and focus on what matters most.