Money Clinic with Claer Barrett The 2025 Budget: what does it mean for your money?
Nov 29, 2025
Tej Parikh, FT economics leader writer, explains macro effects on jobs and growth. Stuart Kirk, FT investment columnist, shares why he shifted into cash and talks portfolio moves. Dan Neidle, founder of Tax Policy Associates, unpacks pension and salary sacrifice rules and childcare cliffs. They debate tax complexity, ISA and VCT changes, and what the Budget could mean for investing and hiring.
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Employer NI Was The Key Driver For Salary Sacrifice
- Salary sacrifice yielded big employer NI savings and was widely used to manage marginal rates around £50k and £100k.
- The employer 15% NI saving was the most valuable element, making schemes attractive for high earners.
Use Personal Pension Contributions To Manage The £100k Cliff
- If you need to stay under £100k, use direct pension contributions rather than relying solely on employer salary sacrifice.
- You'll pay slightly more NICs (around 2% at higher rates) and extra admin, but it preserves childcare/subsidy thresholds.
ISA Changes Won't Magically Funnel Cash Into Stocks
- Cutting stamp duty for new London listings targets IPO activity but won't move large pools of existing equity.
- Stuart Kirk: equity markets are permanent capital, so secondary market flows won't increase just because ISAs change.