The Autumn Budget 2025 explained

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This week on IFS Zooms In, Helen Miller is joined by IFS economists Ben Zaranko and Christine Farquharson to unpack one of the biggest Autumn Budgets in years. With seventy-five policy measures, major tax and spending changes, and a striking shift in the economic forecasts, this was a Budget that surprised almost everyone.

Helen, Ben and Christine break down:

• Why the expected “fiscal repair job” never arrived
• How a “lucky” surge in forecast tax receipts reshaped the Chancellor’s options
• The major spending stories: abolishing the two-child limit, rising welfare pressures, SEND funding reform, and tighter departmental plans
• The government’s tax decisions - from threshold freezes to the new ‘mansion tax’
• Whether any of this adds up to a credible long-term strategy for growth

Zooming in discussion questions:

These are a set of questions designed for A Level economics students to discuss, written by teacher Will Haines.

1. The Chancellor received an upgrade in tax receipts from the OBR forecast. Explain the economic reasons for this change.
2. Analyse the potential economic impact of abolishing the two-child benefit cap.
3. Which announcement in the Budget is likely to have the most significant impact on the UK economy? Justify your response.