Chancellor’s speech makes tax rises all but inevitable, warns Moore Thompson

Accountants at Moore Thompson have warned that tax rises now appear “virtually guaranteed” following Chancellor Rachel Reeves’ latest speech to Parliament ahead of the Autumn Budget on 26 November.

In her address, the Chancellor refused to rule out tax increases, saying she may need to make “necessary choices” to meet the nation’s rising costs.

She emphasised the importance of maintaining investment, saying that “the easy thing to do would be to cut investment”.

This is a move she argued would risk repeating the mistakes that led to the UK’s current low levels of productivity.

While the speech was light on specific measures, the team at Moore Thompson say it has reinforced expectations that tax rises are on the way and created further uncertainty for individuals and businesses trying to plan ahead.

Heather Bright, Tax Partner at Moore Thompson said: “Many of our clients already believed that tax rises in some form were inevitable, but this speech has made that seem virtually guaranteed.

The tone and language used, particularly the phrase ‘necessary choices’, strongly imply that manifesto promises may be broken and that increases to key taxes are now on the table.”

Moore Thompson added that the anticipation of higher taxes has already started to impact business confidence and investment planning across its client base.

“Clients are telling us that they are holding back on investment decisions because they expect the tax burden to increase,” added Heather.

“This hesitation is particularly concerning at a time when businesses need stability and encouragement to invest in growth, innovation and people.”

The firm also highlighted growing anxiety around the lack of clarity on Agricultural Property Relief (APR) and Business Property Relief (BPR) – two key Inheritance Tax reliefs which remain under review.

Heather said: “The ongoing uncertainty around APR and BPR is a serious concern, not just for farming clients but for business owners more broadly.

“Without clear guidance or reassurance from the Government, clients are left in limbo, unsure how to plan effectively for succession or long-term business continuity.”

Moore Thompson believes that the combination of fiscal pressure, uncertainty and a lack of policy detail is already weighing heavily on sentiment among taxpayers.

“While we understand the difficult position the Chancellor faces, the current lack of clarity is discouraging investment and decision-making,” explained Heather.

“Our clients are preparing for a tightening of the tax regime and a possible shift away from earlier manifesto commitments.

“The best they can do right now is plan ahead where possible, remain flexible and be ready to act once the full details are revealed in the Budget.”

The Autumn Budget is due to be announced on 26 November 2025, and Moore Thompson will be providing updates and analysis as the measures are confirmed.

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