Autumn Budget 2025: What Employers and Jobseekers Need to Know

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The Chancellor has delivered the Autumn Budget 2025, setting out the government’s plans for tax, spending and long-term economic priorities. This year’s Budget focuses on steady growth, improved public services and supporting households with the cost of living. The Budget is one of the most significant moments in the political calendar, outlining the country’s financial priorities and directly shaping the labour market, household incomes and business confidence.

Below is a clear breakdown of what the Budget means for employers and jobseekers.

For Employers

Business Rates Rebalancing

The government has confirmed a major reform to business rates. Retail, hospitality and leisure businesses will benefit from lower, permanent rates, while high-value commercial properties (including large online retail warehouses) will pay more. This shift aims to support high-street businesses and level the playing field between bricks-and-mortar and online competitors.

For employers, this means slightly lower running costs for many premises-based SMEs and improved long-term stability.

Investment in Infrastructure and Growth

The Budget maintains over £120 billion of capital investment across transport, energy, digital infrastructure and housing. The government says this investment is intended to support productivity and unlock growth across the UK.

Businesses in construction, engineering, logistics and professional services may see increased activity, while others may benefit indirectly from improved connectivity.

A More Supportive Labour Market

The government is focusing on reducing economic inactivity through changes to welfare, employment support and investment in skills. This is part of a broader effort to ensure more people can access work and progress in their careers.

For employers, a more active and better-supported workforce can help ease staffing shortages and widen the available talent pool.

Cost-of-Living Measures and Inflation

The Budget includes steps that the government says will help reduce inflation, including lowering energy bills and freezing rail fares. As household budgets stabilise, consumer-facing businesses may see steadier demand. Lower inflation also creates a more predictable environment for pay planning and recruitment.

For Jobseekers

Energy Bills and Everyday Costs

From April 2026, households will see around £150 off annual energy bills under new government measures. Regulated rail fares and prescription charges will also be frozen for a year. These changes are designed to ease pressure on working families and support people moving into or between jobs.

Wages and Incomes

The National Living Wage will increase to £12.71 per hour in April 2026, providing a pay boost for many lower-paid workers. Meanwhile, the State Pension will rise by 4.8%, helping older people and those moving toward retirement.

Tax Threshold Stability

Income tax and National Insurance thresholds will be maintained, meaning no changes for employees over the coming years. While thresholds are not increasing, the government’s position is that stable tax rules support planning and financial certainty for workers.

Employment Support and Skills

The Budget places continued emphasis on improving employment support, including better access to training and youth employment programmes. This is part of a wider government strategy to help people build skills and move into higher-quality jobs.

What This Means for the Labour Market

The government is aiming for a more stable economy, lower inflation and improved public services. These are all factors that play a role in hiring confidence, workforce availability and job stability. For employers, the focus on investment, labour-market participation and business-rate reform may create a more predictable environment for recruitment. For jobseekers, the Budget offers support with living costs, higher wages and improved access to work and training.