Expert forecasts middle-class will feel the brunt of Healey's Autumn Budget
Financial educator Antonia Medlicott says the upcoming October 28 budget is likely to hit middle-income earners hardest, despite expectations it will target the wealthy.
The Chancellor, John Healey, will present his inaugural Autumn Budget on October 28, with early speculation focusing on pension tax reforms, inheritance tax adjustments and the frozen personal allowance. Antonia Medlicott, who leads the financial-education firm Investing Insiders, explains that the static personal allowance of £12,570, locked in for five years, will increasingly pull earners into higher tax bands as wages rise.
From April 2027, any unused pension funds will become subject to inheritance tax, a change aimed at larger pension pots but likely to affect middle-income savers who lack sophisticated tax planning. While the wealthiest can often navigate these shifts, ordinary households with modest pensions and savings may face higher liabilities. Medlicott adds that the government might prioritize affordability for middle earners by focusing on capital gains and inheritance tax reliefs rather than altering income tax, National Insurance, or VAT rates. She urges the public to become more financially engaged to avoid unexpected tax burdens.
Why it matters
The budget could raise taxes for many middle-income households, affecting their disposable income and savings.
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