Reeves Budget 2025 Tax Changes For Landlords

Landlords will pay more tax thanks to Chancellor Rachel Reeves and one of the most leaked and tweaked Budgets ever.

She has pencilled in policies for weeks, only to rub them out after Labour's backbenchers signalled their dissatisfaction.

The drama continued until the last minute as the Office of Budget Responsibility published an economic outlook based on her speech a few hours before she was due in Parliament to face MPs.

"The government's number one mission is to achieve higher economic growth and raise living standards by creating strong foundations today to secure Britain's long-term future," said Reeves.

"The UK has considerable economic strengths. It is the second largest services exporter in the world, the second most attractive location to invest in Europe and is ranked sixth in the Global Innovation Index. The UK is also home to one of the world's leading financial centres, Europe's leading tech and AI ecosystem and four of the world's top 10 universities.

Tories rip into Reeves

"Despite these strengths, the UK has had sluggish productivity growth, and the global macroeconomic environment has remained uncertain."

However, Tory leader Kemi Badenoch argued confidence was at a record low, and the Budget was designed to bolster the standing of Prime Minister Keir Starmer and Reeves with Labour MPs.

Badenoch ripped into Reeves, demanding she should resign after explaining she had broken Labour's manifesto pledges of no tax rises.

"This is her second budget, and it should be her last," said Badenoch.

"We've been fed puff pieces in the press showing a woman wallowing in self-pity, whining about 'mansplaining' and 'misogyny'. Let me explain to the Chancellor woman-to-woman, people out there aren't complaining because she's female, they're complaining because she's utterly incompetent," she added.

Policies may never see the light of day

Much of Reeves's speech was backloaded, with starting dates months or years ahead.

ITV's Robert Peston pointed out she may not be in post when they are due to start, and her successor may cancel or delay the policies, which may never see the light of day.

The Chancellor's 69-minute speech to a packed House of Commons listed lots of small tax changes, including:

• Tax rate increases for landlords, savers and investors
• A mansion tax on homes worth more than £2 million to be collected as a council tax surcharge from April 2028
• A reduction in the cash ISA allowance, down from £20,000 a year to a £12,000 allowance from April 2027 - but only for investors aged below 65 years old. The £20,000 allowance for stocks and shares ISAs remains
• Two child benefit cap abolished
• Gambling industry hit from April 2026 with a remote gaming duty hike from 21 per cent to 40 per cent, while the general betting duty for remote betting is set at 25 per cent from April 2027, and bingo duty is scrapped
• Electric and plug-in hybrid cars face a 3p/1.5p a mile levy from April 2028

Chancellor Rachel Reeves Budget 2025 speech in full