Business
When is the Budget and what might be in it?
Chancellor Rachel Reeves has acknowledged she is considering tax rises and spending cuts ahead of her autumn Budget on 26 November.
Before the 2024 general election, Labour promised not to increase income tax, National Insurance or VAT for working people.
But the Institute for Fiscal Studies (IFS) says she will “almost certainly” have to raise taxes to make up a £22bn shortfall in the government’s finances.
The chancellor of the exchequer’s Budget statement outlines government plans for raising or cutting taxes. It also includes big decisions about spending on public services such as health, schools and police.
The statement is made to MPs in the House of Commons. It usually starts at about 12:30 UK time – after Prime Minister’s Questions – and lasts for about an hour.
The Leader of the Opposition, Conservative MP Kemi Badenoch, will give an immediate response. MPs will then debate the measures for four days, before voting on them.
There has been a lot of speculation that Reeves will have to raise taxes because she needs more money in order to meet her self-imposed rules for government finances.
She has two main rules, which she describes as “non-negotiable”:
- Not to borrow to fund day-to-day public spending by the end of this parliament
- To get government debt falling as a share of national income by the end of this parliament
The IFS said finding £22bn would allow the government to maintain the £10bn buffer it currently has, but argued there was a “strong case” for trying to increase it further.
The £10bn margin Reeves left herself after her Spring Statement in March was one of the lowest a chancellor has given themselves since 2010, with the average for the period standing at £30bn.
Income Tax and National Insurance (NI)
The government could extend the current freeze on income tax and NI thresholds, which is due to end in 2028.
Freezing the thresholds means that, as salaries rise over time, more people reach an income level at which they start paying tax or qualify for higher rates. This is often referred to as a “stealth tax”.
Speaking to the BBC in September, Reeves did not rule out extending the freeze.
The Resolution Foundation think tank – which has close links to some members of the government – believes some personal taxes will have to rise.
As part of a package of measures, it recommended cutting 2p from the employee NI rate, while adding the same amount to income tax.
Such a move would potentially affect pensioners, landlords and the self-employed more than workers. Their tax would increase but they wouldn’t benefit from a matched cut to NI.
Reeves has signalled that she is likely to focus on wealthy individuals, arguing “those with the broadest shoulders should pay their fair share”.
She may change the rules for limited liability partnerships (LLPs), which are sometimes used by high earning professionals such as lawyers and accountants.
Those who operate as LLPs are treated as self-employed and do not have to pay employers’ NI. The Times reported that changing this could raise £2bn.
Help with the cost of living
In October, Reeves told the BBC that she would take “targeted action to deal with cost of living challenges” while inflation remains high.
The BBC understands that the government could intervene to bring down gas and electricity bills. This could happen by reducing some regulatory levies currently added to bills, or by cutting the current 5% rate of VAT charged on energy.
The Sunday Times previously reported that it might fall to zero.
Property taxes
Reports suggest the government may reform property taxes. This could include replacing stamp duty – a tax buyers pay on properties above a certain value in England and Northern Ireland – with a property tax.
Landlords could have to pay more taxes, and council tax could be replaced.
Some people selling their main residence may have to pay capital gains tax.
Youth employment guarantee
In September, Reeves said that young people who have been out of work for 18 months will be given paid placements to help them secure full-time employment.
Isa reform
In July, the chancellor ruled out any immediate reform to cash Isas (Individual Savings Accounts). There had been speculation that she wanted to reduce the annual allowance to push people into investing in shares instead.
However, the FT has reported that she may announce a cut in the cash ISA limit from the current £20,000 to £10,000.
Pension changes
There has also been speculation about possible changes to pension rules, such as the level of tax relief available to savers and the size of the cash lump sum which can be withdrawn.
Cutting the higher rate tax relief on pension contributions would save the Treasury money, but may make pension savings less attractive.
Business taxes
The TUC, the umbrella group for trade unions in the UK, has called for higher taxes on online gaming companies and on banks’ profits.
In September, the chancellor told ITV News that “there is a case for gambling firms paying more”.
The Sunday Times reported that William Hill owner Evoke could close up to 200 of the chain’s betting shops in an attempt to stem losses, with the exact number being influenced by any changes to taxes on the sector.
Inheritance tax
In last year’s Budget, the government said that from April 2026, inherited agricultural assets worth more than £1m, which were previously exempt from inheritance tax, would be taxed at a rate of 20%.
In October, the Sunday Times reported that ministers were exploring changes to this, However, Farming Minister Dame Angela Eagle told the BBC’s Farming Today programme there was “no likelihood” of the policy being changed.
The Labour government says that boosting the economy is a key priority.
A growing economy usually means people spend more, extra jobs are created, more tax is paid and workers get better pay rises.
The UK economy has been slowing in recent months after a strong start to 2025.
The latest figures show that the economy grew by 0.1% in August, after a 0.1% contraction in July.
Over the three months to August, UK GDP grew by 0.3%, down from the 0.6% growth seen between March and May.
Meanwhile, government borrowing – the difference between public spending and tax income – reached £20.2bn in September. That was the highest level seen for the month in five years, driven by an increase in debt interest payments.
Prices are also still rising faster than expected.
Inflation held steady at 3.8% in the year to September, the same as in July and August, which was lower than expected, but still above the Bank of England’s 2% target.
In August, the Bank cut interest rates for the fifth time in a year, taking the cost of borrowing to the lowest level for more than two years.
It made the cut because of concerns that the jobs market was weakening, with data showing job vacancies were continuing to fall and wage growth was slowing.
However, the Bank held rates at its next meeting in September, arguing the UK was “not out of the woods” on inflation.
In October, the International Monetary Fund (IMF) forecast that the UK was set to be the second-fastest-growing major economy in 2025.
However, it also predicted that the UK will face the highest rate of inflation among G7 nations in both 2025 and 2026, driven by rising energy and utility bills.
The number of reported passenger assaults on the rail network has more than tripled in the past 10 years, according to official figures.
Between April 2024 and March 2025 found there were 10,231 reported assaults, up 7% on the year before, the Office of Rail and Road’s annual report into health and safety found.
Ten years ago, there were 3,211 reported assaults, including harassment and common assaults.
The increase coincides with a drive by British Transport Police to encourage the public to report a wide range of potential concerns on the rail network.
Its “See It. Say It. Sorted.” campaign was launched in 2016 and then relaunched last year, encouraging the public to report “anything unusual”, either to station staff or to British Transport Police.
In 2022, it launched its ‘Speak Up, Interrupt’ campaign to encourage anyone who witnesses inappropriate sexual behaviour “to report incidents or safely intervene where they can”.
Across the mainline rail network, harassment and common assault made up more than three quarters of the total assaults, and both of these categories saw an increase.
This trend was mirrored on the London Underground, where reported assaults reached their highest level since the data series began in 2004, up to just over 4,600.
Of those reported incidents, harassment and common assault counting for more than 80% of the total.
In the financial year from April 2024 in the report to March 2025, passengers took 1.7 billion journeys on the mainline railway.
In that period, 14 members of the public died on the mainline network and the London Underground (not counting suicides and trespass-related incidents).
There were also two deaths of workers on the rail network – one after being assaulted at a station, and the other resulting from a fall.
The number of suicides across the rail network were also at their highest level since 2002.
Across the mainline network, there were 368 suicides or suspected suicide attempts, resulting in 293 fatalities.
Thursday’s report found injuries to members of the public and workers have also been creeping back towards pre-pandemic highs.
Recording just over 11,472 injuries, this marked the fourth yearly increase in a row, but was still below level reported in 2019-20.
Of these injuries, the vast majority – almost 80% – were non-severe.
The ORR divides up the information it reports between the mainline rail network, non-mainline (which includes services through the Channel Tunnel, as well as trams and light rail), and the London Underground.
- If you, or someone you know, has been affected by mental health issues BBC Action Line has put together a list of organisations which can help.
Business
Don’t Panic! You Can Still Fix Errors In Your ITR With Updated Return For AY 2025-26– Here’s How
New Delhi: If you’ve made an error or missed out on some details while filing your Income Tax Return (ITR) for Assessment Year 2025-26, there’s no need to panic. The Income Tax Department gives you a second chance through the updated return option, allowing you to revise or correct your ITR even after submission — and the best part is, you have up to 48 months from the end of the financial year to do so.
Till when can you file an updated ITR for Assessment Year 2025-26?
For Assessment Year 2025-26, taxpayers have time till March 31, 2030, to file an updated return. This extended window encourages voluntary compliance by giving individuals enough time to review and correct any mistakes in their ITR filings.
Understanding the Updated Return
An updated return is a special type of Income Tax Return (ITR) that allows taxpayers extra time to correct or update their earlier filings. It’s a move by the Income Tax Department to promote voluntary compliance, giving individuals the chance to fix any mistakes or add missed information even after the original deadline.
Anyone can file an updated return—whether or not they have already filed an original, belated, or revised return for that assessment year—except in a few specific cases.
While filing an updated return, taxpayers need to provide certain details such as:
– Basic information like PAN, name, and Aadhaar.
– Details of the earlier return, if any—such as the section, ITR form, acknowledgement number, and filing date.
– Confirmation of eligibility to file an updated return.
– The ITR form chosen for the updated return.
– The reason for filing the updated return.
When You’re Not Allowed to File an Updated Return
While the updated return offers flexibility, there are certain situations where you cannot file one. For instance, if your total income results in a loss or if filing it would reduce your tax liability compared to your earlier return, you won’t be eligible to submit an updated return.
It’s also important to note that an updated return can be filed only once for a particular assessment year — it cannot be revised later.
Additionally, you cannot file an updated return for the assessment year in which a search or survey has been conducted under Section 132, or for any year before that assessment year.
New Delhi: Union Minister Jyotiraditya Scindia on Thursday had a detailed discussion with Finance Minister Nirmala Sitharaman and senior ministry officials, exploring strategies to accelerate digital infrastructure development and regional connectivity.
The discussions centred around the capex priorities for Department of Telecommunications (DoT), the Ministry of Development of Northeastern Region and India Post Office.
“Had a constructive discussion with Finance Minister and senior officials of Finance Ministry on the Capex priorities for @DoT_India, @MDoNER_India, and @IndiaPostOffice,” Scindia posted on X social media platform.
“We explored strategies to accelerate digital infrastructure development, enhance regional connectivity, and modernise services with an optimising resource allocation and stronger impact,” the minister added.
He further stated that “our shared goal remains clear – to strengthen these vital sectors as engines of growth and innovation, and to advance a truly inclusive, digitally empowered and Aatmanirbhar Bharat”.
Last week, Scindia highlighted that the ministry’s expenditure on projects in northeast had touched an all-time high of Rs 3,447.71 crore in FY 2024–25 — marking a 74.4 per cent increase over the previous year and more than 200 per cent growth in three years. This performance, he noted, reflects the emphasis of the Ministry of Development of Northeastern Region (MDoNER) on fiscal discipline, digital monitoring, and timely delivery.
Meanwhile, India’s telecom sector is poised to increase its contribution to the country’s GDP from the current 12-14 per cent to 20 per cent over the next 10 to 12 years. India has developed an indigenous 4G technology stack, making it the fifth country globally to achieve this capability. The development was completed in a record 20 months, from concept to a full 4G stack.
The minister added that BSNL will expand its 4G network and eventually upgrade it to 5G. India now has 1.2 billion mobile subscribers, representing 20 per cent of the world’s mobile population.
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