Political Fix Bonus: What does the 2025 Budget mean for your money?
Dec 1, 2025
Join Dan Neidle, founder of Tax Policy Associates, expert Stuart Kirk, and economics writer Tej Parikh as they decode the latest UK Budget. They dive into the mechanics of salary sacrifice and its impact on childcare benefits. Stuart shares his shift to cash amid market volatility. The panel debates whether tax changes might hinder or help UK growth and discusses potential winners in the market, like small-caps and life sciences. Plus, they tackle the complexities of reforms and implications for pension savings. Tune in for sharp insights!
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Threshold Freeze Is The Big Tax Raiser
- Freezing income tax thresholds is the main revenue driver of the Budget, not headline rate rises.
- Dan Neidle says the five-year freeze yields about £30bn, hitting many as thresholds stay static while wages rise.
Don't Act Now On Salary Sacrifice Changes
- Don't overhaul your financial life now over the planned salary-sacrifice change scheduled for 2029.
- Dan Neidle advises forgetting immediate planning because rules may change and 2029 is far off.
Employer NI Was The Salary-Sacrifice Sweet Spot
- Salary sacrifice saved employers 15% national insurance, making pensions very attractive.
- Dan Neidle notes replacing it with individual pension contributions costs only around 2% more for higher earners.