Autumn Budget: 10 questions you were afraid to ask

Every budget makes the headlines with speculation about what is - or isn’t - in it (often circulating for months in advance).

It’s the moment when the Chancellor of the Exchequer rises in the House of Commons, red briefcase in hand, to announce decisions that ripple through the economy and into our everyday lives. Yet for many people, the whole thing can feel confusing and full of odd practices. What exactly is the budget? Why does it matter? And most importantly, what does it mean for me?

Let’s take a step back and walk through ten of the most common – and often unasked – questions about the budget.

• Get updates on markets, ISA funds, pension saving and much more

1. What is the budget?

The budget is the UK government’s annual financial statement used to outline its plans for the economy. It sets out how much money the government plans to raise through taxation, how it will spend it, and how it intends to manage borrowing. In essence, it’s the nation’s financial plan for the year ahead. The budget also includes forecasts for the economy by the Office for Budget Responsibility (OBR).

2. What is the Office for Budget Responsibility?

The OBR is an independent public body that provides economic forecasts and analysis of the UK’s public finances. It produces five-year forecasts twice a year on growth, annual borrowing, and overall debt, and assesses whether the Chancellor’s proposals are reliable. It was created to offer impartial and authoritative information to help guide government policy and budgetary decisions.

3. Who delivers the budget, and who decides what’s in it?

The Chancellor of the Exchequer delivers the budget speech, but the actual content is the result of months of work across government. The Treasury leads the process, working closely with the Prime Minister and the Cabinet to decide which policies to include. In practice, the Chancellor is the voice of a much larger team, translating government strategy into a financial roadmap.

4. Why is it important?

The budget is a fundamental tool for managing the UK’s economy and ensuring the welfare of its citizens. It’s essential for setting economic priorities, addressing societal needs, and ensuring the effective operation of government. And it matters because it affects the economy as a whole – from individuals and businesses to the wider economy – and signifies the government’s priorities and approach.

5. When is it, and why is it annual?

Since 2017, the Treasury’s policy has been to hold one main Autumn Budget. Rachel Reeves, the current Chancellor, has reaffirmed this approach, committing to one major ‘fiscal event’ a year to give people and businesses certainty. There is also typically a Spring Statement, but it’s intended as a lighter touch update rather than a second full budget. The government has announced that the next budget – the Autumn Budget – will take place on Wednesday, 26 November 2025.

• Read: What can we expect in the Autumn Budget?

6. What actually happens on budget day?

On budget day, the Chancellor delivers a speech to Parliament that outlines the government’s plans. This speech is televised and usually lasts around an hour. As soon as the speech finishes, detailed documents are released that spell out the numbers and policies in depth. Announcements quickly filter through into headlines about the changes. And for many people, this is the moment they learn how they are directly affected.

7. What happens afterwards – how do announcements become real changes?

The measures outlined in the budget don’t take effect automatically. Instead, they usually become part of a Finance Bill, which has to pass through Parliament before the proposals are written into law. Some changes can take effect almost immediately, such as adjustments to tax thresholds, while others are timed to take place at the beginning of the new tax year in April. Other projects or initiatives may be phased in over months or even years with gradual rollouts and adjustments.

8. What’s its countrywide effect?

The budget has a wide-ranging impact and affects various aspects of the economy and society. It shapes the UK’s priorities for the future such as how the economy grows, job creation and funding for public services (like the NHS, schools, and transport). Businesses may see their operating costs, profitability, and investment decisions affected also. At a national level, it sets out how the government will manage borrowing and debt.

9. How could it affect me personally?

For individuals, the budget often translates directly into changes they notice day to day. On the whole the budget can impact the cost of living in the UK. Adjustments to income tax or National Insurance alter how much money ends up in your pocket. Changes to duties on things like fuel, alcohol, or tobacco affect household spending. Amendments to pensions, benefits, or housing policy can shift financial planning for the future. While the budget may seem abstract, its announcements affect how you earn, spend, and save.

10. How does it affect investing and the market?

Investors and markets pay close attention to the budget because it influences where the economy is heading. Shifts in tax policy, borrowing levels, and spending priorities can move share prices, bond yields, and the value of the pound, shaping which companies and sectors perform well. For individual investors, the budget can also bring adjustments to ISA limits, pension tax relief, or capital gains rules.

• Read: Autumn Budget 2025: How might the government change pensions?

Wrapping up

The budget may sound technical, but at its heart it is about choices: how the government raises and spends money, and how those decisions filter down into households, businesses, and the wider economy. By understanding the basics, you can cut through the jargon and see more clearly how the announcements in Westminster connect to everyday life.

Read: Autumn Budget: inheritance tax and other possible changes

Sources:

• https://www.parliament.uk/
• https://www.bdo.co.uk/en-gb/home
• https://www.bbc.co.uk/
• https://obr.uk/        

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Tax treatment depends on individual circumstances and all tax rules may change in the future. Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028). This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.