BUDGET TRACKER

Employer National Insurance raised from 13.8% to 15%, with the secondary threshold cut from £9,100 to £5,000. National Living Wage increased 6.7% to £12.21 per hour. Capital Gains Tax rates increased — basic rate from 10% to 18%, higher rate from 20% to 24%. Stamp Duty surcharge on second homes raised to 5%.

Income tax thresholds remain frozen through to 2028, continuing fiscal drag for millions of workers. Council tax bands updated across England, with average rises of 4.99% for most households. Employer NI rises take full effect, pushing employment costs up across the private sector.

Employee National Insurance main rate cut from 10% to 8% — a headline saving of around £450/yr for average earners. However, with income tax thresholds frozen to 2028, fiscal drag continues to drag more workers into higher bands, wiping out NI savings for many over time.

Personal allowance and higher-rate threshold frozen until April 2028 — the longest such freeze in modern UK tax history. With inflation running at 10%+, this decision was projected by the OBR to pull millions more taxpayers into higher bands. The stealth tax that most people still haven't noticed.