Income tax frozen, electric car tax introduced and more: What was in today's budget?
There was a lot in Rachel Reeves' budget today, here are the bits which might affect you
Last updated 26th Nov 2025
Chancellor Rachel Reeves delivered her 2025 budget statement today, with a lot of tax rises, but also some measures frozen.
Tax rises amounting to £26 billion were announced as Reeves battles a downgrade in forecast economic growth.
Here are some of the main points from today's speech:
What was in Rachel Reeve's budget today?
Income tax frozen: A freeze on income tax thresholds has been extended to the 2030-2031 tax year, a move which is set to raise £7.6 billion in revenue by 2030 and increase the number of UK taxpayers.
It means the current income tax bands will stay as they are until April 2031 for taxpayers in England, Wales and Northern Ireland.
Scotland’s income tax bands are set by the Scottish government.
Salary Sacrifice: Salary-sacrificed pension contributions above an annual £2,000 threshold will no longer be exempt from national insurance from April 2029.
Two-child benefit limit: The controversial two-child benefits limit will be scrapped from April, at a cost of £3 billion at the end of this Parliament.
Mansion tax: A high-value council tax surcharge on properties worth more than £2 million will raise £0.4 billion in 2029/30.
Fuel duty tax increasing next year: The 5p cut in fuel duty will remain in place until September 2026, when it will be reversed through a staggered approach.
Electric cars taxed: Drivers of battery electric cars will be hit by a 3p per mile tax from April 2028, with the charge to rise annually with inflation.
Cash ISAs reduced: The annual cash ISA limit will be reduced from £20,000 to £12,000 from April 2027 to encourage people to invest in stocks and shares
Remote gaming and gambling tax hike: The tax on remote gaming will rise from 21% to 40%, and on online betting from 15% to 25%, while there are no changes for in-person gambling or horse-racing, and bingo duty is being abolished.
OBR releases budget details in error
In an unprecedented blunder, full details of Ms Reeves’s plans were published by the OBR more than half an hour before she stood up in the Commons chamber.
The OBR document is not meant to be released until after the Chancellor has delivered her Budget in the House of Commons.
But it was published on the Budget watchdog’s website early, the latest in a series of leaks and early disclosures in the run-up to Ms Reeves’s statement.
The OBR apologised, blaming a “technical error”.
Shadow chancellor Sir Mel Stride said it was an “utterly outrageous” leak of market-sensitive information, which could constitute a criminal act.
Ms Reeves said it was “deeply disappointing” and a “serious error on their part”.
The OBR confirmed Rachel Reeves’s Budget “raises taxes by amounts rising to £26 billion in 2029/30, through freezing personal tax thresholds and a host of smaller measures”.