26/11/2025
Today’s Budget statement from Chancellor Rachel Reeves sets out the Government’s plans to tackle the cost of living crisis, increase tax revenues, reduce NHS waiting lists and cut national debt. These decisions affect households, high-street businesses and the wider economy.
Businesses are continuing to absorb rising costs, particularly fuel, staffing and wages. The April increase in minimum wage adds further pressure during what remains a very challenging period. The OBR now predicts 1.5% UK growth this year (up from 1%) and inflation easing back to the 2% target by 2027.
Minimum wages will rise across all age groups, with the National Living Wage reaching £12.71 for over 21s. The Youth Employment Guarantee will provide paid placements to young people unemployed for 18 months or more, and apprenticeships for under-25s will be fully funded for SMEs.
Tax thresholds for NI and income tax will remain frozen until after 2028, while taxes on savings and investments will rise. Benefits including PIP, DLA and Carer’s Allowance will increase by 3.8%, and the state pension will rise by 4.8%. The two-child benefit cap will be scrapped from April.
Electric vehicles will face mileage-based road tax from 2028, while fuel duty remains frozen until September 2026.
This is a demanding time for the sector, and NAFD will continue supporting members of all sizes. Full sector impact and reaction will feature in next month’s FDM.
