After weeks of rumours and leaks, and the unprecedented early release of the OBR’s Budget report, Chancellor Rachel Reeves has confirmed the government’s Budget policies.

Similar to the Budget in 2024, a combination of rumours and leaks had left markets unsure of what to expect ahead of today’s announcements, with many fearing the worst as the Chancellor attempted to raise taxes and reduce spending, all while keeping Labour MPs and bond vigilantes happy.

There are several announcements that could impact UK investors and savers across all income thresholds, and as expected, taxes are rising. The OBR report states that the tax increases mean that the tax burden in the UK will be at a record high by 2030, reaching “38 per cent of GDP in 2030-31”.

Those with large property portfolios and high-value homes could be impacted by the so-called ‘Mansion Tax’, levied on properties worth over £2 million via higher council tax bills. This surcharge is expected to be introduced from 2028, and will cost £2,500 for properties in the lowest band (£2mn - £2.5mn), and £7,500 for properties of £5mn or more.

Increasing the tax rates on dividends, property and savings income by 2 percentage points will also hit investors and savers alike. The increase on dividends in particular somewhat contradicts the government's hopes for further investments by UK savers.

Freezing income tax thresholds at current levels until 2031 remains effectively a stealth tax on working people, and will continue to drag more people into paying more taxes as wages continue to rise. This includes of course those affected by the hike to minimum wages in April next year.

Another major change for savers will be felt in ISA thresholds. ISAs will still have an overall annual threshold of £20,000 but £8,000 of this will need to be used for investment purposes (stocks & shares ISAs). Effectively this cuts the allowance (for those 65 and under) to £12,000 in cash ISAs, limiting how much can be saved tax-free annually, whilst encouraging younger savers into investments with potentially higher risks.

The OBR report also shows that growth is forecast to be lower, while inflation forecasts are higher at 3.5% this year and 2.5% next year. Slower growth and higher inflation continues to paint a grim outlook for the UK economy. Higher inflation could also limit the Bank of England’s ability to keep cutting interest rates.

The pound has risen as the Chancellor gave her speech, rising to a peak of $1.32163 against the dollar. This could suggest some market support for the plans and fiscal responsibility shown, or may be more focused on the BoE’s inability to cut interest rates if inflation does remain higher than initially forecast.

UK bond yields have also pulled back slightly, with markets pleased to see increased fiscal headroom (over double from £9.9bn to £21.7bn). The moves have been relatively muted however, and markets may take some time to digest the announcements and make a judgement on their credibility and impact going forward.

There will be some relief in moving past the uncertainty of recent weeks, and if things calm down politically and economically there could be some further gains for the pound and reduction in bond yields.

Gold and silver prices have been climbing this week in most currencies as markets have raised expectations for a US rate cut in two weeks. The CME FedWatch Tool is showing a 82.9% chance for rates to be cut, a stark contrast to just last week when easing was only given a 31.8% chance. US trading will be closed Thursday for the Thanksgiving holiday.

With the pound strengthening somewhat today however, that has limited gold and silver’s gains in GBP, which are down 0.3% and up 0.8% respectively. This is in comparison to USD, where both metals are up 0.1% and 1% respectively at the time of writing.

The Autumn Budget 2025 has very few measures that directly impact precious metals, such as the change to CGT thresholds announced last year, but investors and savers will undoubtedly be reviewing their portfolios to calculate the impact of this years changes, and whether a move towards precious metals is warranted. Gold and silver lack the annual limits of ISAs, and continue to offer CGT-free options, all with performances in 2025 that have surpassed many other assets.