How could the Autumn Budget 2025 rebalance taxes without impacting workers' pay?

By implementing sensible reforms, such as switching 2p from National Insurance to Income Tax, the Chancellor could raise revenue, boost growth, and increase business confidence.

What impact could a switch from National Insurance to Income Tax have on the economy?

It could level the playing field between employers and employees, broaden the tax base, and align incentives across the entire economy.

How could the Chancellor further increase revenue and improve fairness between businesses?

By implementing targeted measures, such as reversing the surge in unpaid Corporation Tax among smaller firms and gradually reducing the VAT threshold towards £30,000, which could raise an additional £2 billion annually.

What is the overall goal of the Autumn Budget 2025 and how can it achieve it?

The goal is to stabilize the economy, prioritize work, improve compliance, and simplify the tax system. This will reduce uncertainty, support investment, and allow the government to focus on long-term growth drivers.

Autumn Budget 2025: levelling the tax playing field for a fairer economy

CREATED BY ROGER EDDOWES

Published: 30/10/2025 @ 09:00AM

#AutumnBudget2025 #TaxReform #UKEconomy #SmallBusiness #FiscalPolicy #PublicServices

The Autumn Budget 2025 could rebalance taxes without denting pay packets. If the Chancellor implements sensible reforms, they could raise revenue, boost growth and increase overall business confidence. It's a pragmatic path to stability and growth ...

Autumn Budget 2025, Leaves fall, crunching sound, Economy struggles, hope found

A straightforward switch of 2p from National Insurance to Income Tax would raise around £6 billion, protect workers' take-home pay, and trim the current bias that favours employers over employees. In practice, it would broaden the base to those with income outside employment while aligning incentives across the entire economy.

Will HM Treasury want to send a decisive
signal on fiscal policy?

If that is the case, it can pair that switch with targeted measures that lift compliance and competition, including reversing the surge in unpaid Corporation Tax among smaller firms, which could realistically recover billions of pounds without stifling legitimate growth.

In addition, the current VAT threshold, unusually high by international standards, encourages small businesses to deliberately cluster just below the line. A clearly signposted, gradual reduction towards £30,000 over several years could smooth behaviour, improve fairness between firms, and raise about £2 billion annually once fully in place. Maybe requiring all businesses to be VAT-registered from day one with a zero threshold could be a big revenue earner? I feel it is undoubtedly an option.

None of this removes the need for productivity gains in public services, but it does buy time and credibility. If the NHS and other departments deliver efficiencies, the Budget can hold; if they underperform, a broader, more neutral tax base cushions the pressure on departmental funding.

Crucially, the combined package shows intent:

stabilise the outlook,
prioritise work,
improve compliance,
simplify where possible;

That mix reduces uncertainty and supports investment, allowing HM Treasury to focus on long-run growth drivers like skills, planning reform, and the diffusion of AI across the economy.

Yet confidence matters as much as the arithmetic.A coherent narrative around the Autumn Budget 2025 - protecting pay, levelling the playing field between income types, and encouraging fair competition - can reassure markets while providing both entrepreneurs and households with a stable framework for decision-making.

The opportunity now is to lock in a credible path!

Suppose the Chancellor can raise at least £20 billion by the end of the period through broad-based, pro-work choices, and keep public service ambitions realistic yet ambitious. In that case, this will ensure the Autumn Budget 2025 marks a durable pivot to fairer, simpler taxation that creates sustainable growth.

And growth on this scale is at the very heart of this government's agenda.

Until next time ...

ROGER EDDOWES
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About Roger Eddowes ...

Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.

Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.

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Autumn Budget 2025: levelling the tax playing field for a fairer economy

Will HM Treasury want to send a decisivesignal on fiscal policy?

The opportunity now is to lock in a credible path!

Will HM Treasury want to send a decisive
signal on fiscal policy?