Business
Isas, cars and pensions – how the Budget affects you?
Kevin PeacheyCost of living correspondent
Getty ImagesChancellor Rachel Reeves is announcing her Budget, but details were published early by the official forecaster.
Here are the key measures and how they will affect you and your money.
You may pay more tax
The amount of income at which you pay different rates of income tax will still not be increased in line with rising prices.
Instead the bands – known as tax thresholds – will stay frozen until 2031. That is three years longer than previously planned.
This means any kind of pay rise could drag you into a higher tax bracket, or see a greater proportion of your income taxed than would otherwise be expected.
Scotland has its own income tax rates.
You may not earn enough to pay income tax, so VAT, paid when buying goods and services, may hit you harder and that’s been left unchanged.
Driving an electric car will be more expensive
Electric vehicle and hybrid car drivers will be taxed for using the road from 2028.
EV drivers will be charged per mile, on top of other road taxes, in new road pricing.
Calculating the number of miles that drivers cover is difficult.
But fuel duty will continue to be frozen.
You will get a rise if you’re on low pay
The chancellor confirmed increases in April for those on minimum wages.
It means:
- Eligible workers aged 21 and over on the National Living Wage will receive £12.71 an hour, up from £12.21
- If you are aged 18, 19 or 20, the National Minimum Wage increase to £10.85 an hour, up from £10
- For those aged 16 or 17, the minimum wage will rise to £8 an hour, up from £7.55
The separate apprentice rate which applies to eligible people under 19 – or those over 19 in the first year of an apprenticeship – will also increase to £8 an hour, from £7.55.
If your home is worth £2m you will pay more tax
Anyone who lives in a home valued at £2m or more in England will face a council tax surcharge from April 2028.
There will be four price bands with the surcharge rising from £2,500 for a property valued in the £2m to £2.5m band, to £7,500 for a property valued in the highest band of £5m or more
While known as a mansion tax, it may also capture homes in expensive areas, and will be levied on about 100,000 properties, primarily in London and south east England.
The move will require the valuation of homes in the top council tax bands – F, G and H – for the first time since 1991.
You can check your council tax band here if you are in England and Wales, Scotland, and Northern Ireland.
Travelling by train in England won’t cost you more
Regulated rail fares in England will be frozen until March 2027 – the first time they have been left unchanged for 30 years.
These fares include season tickets covering most commuter routes, some off-peak return tickets on long-distance journeys and flexible tickets for travel in and around major cities.
Getty ImagesThe freeze only relates to travel in England, and also only applies to services run by England-based train operating companies.
Train operators are free to set prices for unregulated fares.
The bus fare cap of £3 for a single journey, covering most bus journeys in England, is already in place until March 2027.
Saving in a cash Isa will be restricted
The amount of money that can be saved tax-free each year in a cash Isa (Individual Savings Account) will be reduced from £20,000 to £12,000 a year for the under 65s.
Ministers want people to invest more, which comes with greater risk but could help boost growth – a key objective for the government.
There are questions over whether people would naturally put their money into stocks and shares Isas as a result of the less generous tax break on cash Isas.
About a quarter of those who save money into a cash Isa currently save more than £12,000 a year.
But many of those are pensioners, and the chancellor said the over-65s will still be able to save up to £20,000 in cash.
Separately, the Help to Save scheme, which helps those on low incomes and on universal credit to put money aside, will be extended from 2028.
If you have three children you may get more money
At present, parents can only claim universal credit or tax credits for their first two children.
The chancellor says this two-child cap will be scrapped in April next year.
A limit on what you can save into a pension through salary sacrifice
A third of private sector employees and a tenth of public sector workers use a salary sacrifice scheme for their pension savings.
These workers give up a portion of their salary in return for their employer paying the equivalent amount into their pension. The benefit to both employee and employee is that they make savings in national insurance.
A £2,000-a-year cap on the amount that can be put into pensions through this salary sacrifice arrangement will be in place from April 2029.
Employees would still get income tax relief on their pension contributions, but some argue the move will reduce pension saving incentives.
Most benefits and the state pension will rise
Some benefits, including all the main disability benefits, such as personal independence payment, attendance allowance and disability living allowance, as well as carer’s allowance will rise by 3.8% in April, in line with rising prices.
There will be a string of changes to universal credit in April, following announcements made earlier by the government.
The state pension in April will rise by 4.8% in line with average wages, which means:
- the new flat-rate state pension – for those who reached state pension age after April 2016 – will increase to £241.30 a week, or £12,547.60 a year, a rise of £574.60
- the old basic state pension – for those who reached state pension age before April 2016 – will go up to £184.90 a week, or £9,614.80 a year, a rise of £439.40
In general, you need 35 years of qualifying contributions to get a full state pension.
This brings the state pension closer to being subject to income tax – a source of some debate. It will also reignite discussions over the “fairness” of the so-called triple lock.
More on the milkshake tax, prescription charges and Motability
A range of other measures in the Budget had already become clear or been announced in recent days. They included:
- The UK tax on fizzy drinks will be extended to milk-based products in 2028, taking in pre-packaged milkshakes and coffees that are high in sugar. This may push up prices, or lead to ingredient changes
- The cost of a single NHS prescription in England will be frozen at £9.90 for the second year in a row in April
- Disabled people who have a car through the Motability scheme will no longer be allowed “premium” vehicles such as BMWs, Mercedes, Audi, Alfa Romeo and Lexus
- England’s mayors could be given the powers to charge a levy on overnight stays, sometimes referred to as a ‘tourist tax’. Mayors would decide the level of the charge, and how to spend the money in their areas, under the plans which will be consulted upon
Business
India’s $5 Trillion Economy Push Explained: Why Modi Govt Wants To Merge 12 Banks Into 4 Mega ‘World-Class’ Lending Giants
India’s Public Sector Banks Merger: The Centre is mulling over consolidating public-sector banks, and officials involved in the process say the long-term plan could eventually bring down the number of state-owned lenders from 12 to possibly just 4. The goal is to build a banking system that is large enough in scale, has deeper capital strength and is prepared to meet the credit needs of a fast-growing economy.
The minister explained that bigger banks are better equipped to support large-scale lending and long-term projects. “The country’s economy is moving rapidly toward the $5 trillion mark. The government is active in building bigger banks that can meet rising requirements,” she said.
Why India Wants Larger Banks
Sitharaman recently confirmed that the government and the Reserve Bank of India have already begun detailed conversations on another round of mergers. She said the focus is on creating “world-class” banks that can support India’s expanding industries, rising infrastructure investments and overall credit demand.
She clarified that this is not only about merging institutions. The government and RBI are working on strengthening the entire banking ecosystem so that banks grow naturally and operate in a stable environment.
According to her, the core aim is to build stronger, more efficient and globally competitive banks that can help sustain India’s growth momentum.
At present, the country has a total of 12 public sector banks: the State Bank of India (SBI), the Punjab National Bank (PNB), the Bank of Baroda, the Canara Bank, the Union Bank of India, the Bank of India, the Indian Bank, the Central Bank of India, the Indian Overseas Bank (IOB) and the UCO Bank.
What Happens To Employees After Merger?
Whenever bank mergers are discussed, employees become anxious. A merger does not only combine balance sheets; it also brings together different work cultures, internal systems and employee expectations.
In the 1990s and early 2000s, several mergers caused discomfort among staff, including dissatisfaction over new roles, delayed promotions and uncertainty about reporting structures. Some officers who were promoted before mergers found their seniority diluted afterward, which created further frustration.
The finance minister addressed the concerns, saying that the government and the RBI are working together on the merger plan. She stressed that earlier rounds of consolidation had been successful. She added that the country now needs large, global-quality banks “where every customer issue can be resolved”. The focus, she said, is firmly on building world-class institutions.
‘No Layoffs, No Branch Closures’
She made one point unambiguous: no employee will lose their job due to the upcoming merger phase. She said that mergers are part of a natural process of strengthening banks, and this will not affect job security.
She also assured that no branches will be closed and no bank will be shut down as part of the consolidation exercise.
India last carried out a major consolidation drive in 2019-20, reducing the number of public-sector banks from 21 to 12. That round improved the financial health of many lenders.
With the government preparing for the next phase, the goal is clear. India wants large and reliable banks that can support a rapidly growing economy and meet the needs of a country expanding faster than ever.
Business
Stock market holidays in December: When will NSE, BSE remain closed? Check details – The Times of India
Stock market holidays for December: As November comes to a close and the final month of the year begins, investors will want to know on which days trading sessions will be there and on which days stock markets are closed. are likely keeping a close eye on year-end portfolio adjustments, global cues, and corporate earnings.For this year, the only major, away from normal scheduled market holidays in December is Christmas, observed on Thursday, December 25. On this day, Indian stock markets, including the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), will remain closed across equity, derivatives, and securities lending and borrowing (SLB) segments. Trading in currency and interest rate derivatives segments will continue as usual.Markets are expected to reopen on Friday, December 26, as investors return to monitor global developments and finalize year-end positioning. Apart from weekends, Christmas is the only scheduled market holiday this month, making December relatively quiet compared with other festive months, with regards to stock markets.The last trading session in November, which was November 28 (next two days being the weekend) ended flat. BSE Sensex slipped 13.71 points, or 0.02 per cent, to settle at 85,706.67, after hitting an intra-day high of 85,969.89 and a low of 85,577.82, a swing of 392.07 points. Meanwhile, the NSE Nifty fell 12.60 points, or 0.05 per cent, to 26,202.95, halting its two-day rally.
New Delhi: As Indian exporters were already dealing with the heavy impact of tariffs imposed by US President Donald Trump, a new threat has come the fore. A report by global consulting firm BCG warns that India’s industries linked to exports and bound by international rules are now at risk from climate change. The most vulnerable sectors include aluminium, iron, and steel, which could face big losses in profits, disruptions in operations and long-term challenges to their sustainability if prompt action is not taken.
BCG Managing Director and Senior Partner Sumit Gupta, who is also Asia-Pacific leader for climate & sustainability, told PTI that according to the Climate Risk Index 2026, India ranks among the top 10 countries most exposed to extreme weather conditions.
“The cost of ignoring climate change for India could be enormous,” he said, referring to the findings released at COP30.
Citing data from the Reserve Bank of India and the World Economic Forum 2024, he explained that by 2030, extreme climate events could threaten 4.5% of India’s GDP, and by the end of the century, losses could range between 6.4% and more than 10% of national income if climate risks are not addressed.
Direct Impact On Companies
Gupta highlighted how the climate threats directly affect businesses. Extreme weather can destroy physical infrastructure such as roads and bridges, reduce workers’ hours and hamper overall productivity.
Regions with higher climate vulnerability may experience delays in project execution, and investment potential could decline as uncertainty grows.
Earnings Under Threat
BCG’s estimates suggest that globally, climate-related risks could put 5% to 25% of companies’ EBITDA at risk by 2050. Indian businesses are increasingly recognising the severity of the challenge, understanding that climate change threatens not only profits but also the long-term stability of their operations.
If India wants to protect its economy and exports, he advised, taking action on climate change is urgent and necessary.
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