Chancellor Rachel Reeves delivered her second Budget on 26 November 2025, announcing £26 billion in tax increases set to impact HR, payroll and reward strategies. Major changes to salary sacrifice rules, income tax thresholds and minimum wage rates will significantly influence how employers structure compensation and benefits.
Senior associate, Natasha Letchford, quotes "Overall, the Budget may not have been as bad as employers feared, and the larger impact on businesses is likely to be from the increases to National Minimum Wage which were announced yesterday. With staffing costs rising again and the economic outlook generally looking bleak, employers may look at cost-cutting measures including reduced pay increases, halting recruitment and possibly redundancies."
Read the full article here.
Natasha also provided commentary for HR Magazine on the article “Autumn Budget 2025: Implications and advice for HR.” You can read the full article article here.