COMPLIANCE
Budget 2025: a big one for the pay professions
E verybody knew the Budget for 2025 would hold a lot of big announcements, and some of the rumours floating around prior to the speech which we didn’t think would ever be announced, turned out to be true. We wanted to ensure we could provide a succinct roundup of the day’s announcements which will directly impact our members. And here it is… Tax threshold freeze extended The tax threshold freeze, which was originally due to be in place until 2027/28 has been extended by a further three years, to 2030/31. Freezes to the tax threshold are often referred to as being a ‘stealth tax’, because although tax percentages haven’t been increased explicitly, more people will pay more tax if their salaries increase on an annual basis. Note that devolved nations have partial income tax powers. Scotland currently set their own rates and thresholds. Wales currently remain in parity with the rest of the UK. We will update you further when the Scottish and Welsh Budgets are announced.
Wednesday 26 November saw Chancellor of the Exchequer, Rachel Reeves, deliver the Budget for 2025. Here, the CIPP’s policy and research team provides a breakdown of the key measures for pay professionals to be aware of
| Professional in Payroll, Pensions and Reward | December 2025 - January 2026 | Issue 116 32
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