Budget 2025: “Difficult choices, but right for Britain”

Chancellor Rachel Reeves has outlined the government’s tax and spending plans in her Budget today, which has included the freezing of income tax thresholds for another three years, scrapping of the two-child benefit cap and raising the national minimum wage.

Full details of the Budget 2025 can be found here.

In his Budget response, Mike Clancy, Prospect General Secretary, said:

“This was always going to be a difficult Budget given the challenging economic context, but the Chancellor’s choice to avoid a return to austerity and protect public investment is fundamentally the right choice for Britain.

“Working people are realistic that good public services require taxation, but having been asked to contribute more in this Budget, they will expect the government to deliver on the promise of change on which they were elected.

“Government must redouble efforts to back key sectors of our economy through the industrial strategy, invest in our defence and our energy security, and implement the Employment Rights Bill as soon as possible to deliver improved rights for working people.”

On the specific changes to salary sacrifice pension schemes, he added:

“Many Prospect members benefit from salary sacrifice pension contributions, and will be deeply concerned that they will be negatively affected by these changes.

We will be working with members and their employers to understand the impact these changes will have, and fighting hard to protect our members’ pensions.

“It is welcome that the policy has been delayed to provide a period of adjustment, and government should keep open the option of amending the policy based on the emerging evidence about its impact on working people.”