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Reeves Mulls Threshold Freeze and Pension Perk Limits Ahead of 26 November Budget

An expected OBR downgrade is pushing officials to test revenue options that have already prompted a saver rush and industry pushback.

Overview

  • Chancellor Rachel Reeves will deliver the Autumn Budget on 26 November, with the OBR widely expected to cut forecasts and leave a fiscal gap estimated at roughly £20–£40 billion.
  • Extending the freeze on income tax thresholds is increasingly seen by economists as likely, with Oxford Economics calling it near certain and i analysis suggesting an average worker could pay about £250 more a year under typical assumptions.
  • HMRC and Treasury officials are examining curbs to workplace pension tax relief and salary‑sacrifice arrangements that reports say could raise up to £4 billion, potentially costing a typical employee around £210 a year and drawing warnings from industry and opposition figures.
  • Reports indicate the Treasury is considering cutting the annual cash ISA allowance to about £10,000, and Yorkshire Building Society says ISA openings and balances have surged this year as savers move to shelter interest from tax.
  • Further measures under discussion include a ‘settling‑up’ exit tax on emigrants’ UK business assets and a possible income‑tax and National Insurance swap, while industry lobbying intensifies, including AJ Bell’s petition for a Pension Tax Lock backed by about 15,000 signatures.