In this month’s Enews, there is news on what the Confederation of British Industry wants to see in the Autumn Budget. There is also news on the numbers of self-employed workers and concerns over AI replacing jobs to update you on. There is a festive warning over Christmas side hustles from HMRC. There is also news on protection for bank deposits and the latest news on UK inflation to update you on. We look at the major tax and spending decisions announced in the Autumn Budget. There is also a warning on the risks of relying on advice from AI tools and the latest advisory fuel rates to update you on.
- Budget choices will determine success of UK’s growth mission, says CBI
- Self-employed overcounted for decades by official data
- AI will shrink headcount as hiring confidence remains at record low
- Christmas crafters urged to check tax rules
- Bank deposit protection limit to be increased to £120,000
- UK inflation rate falls for first time since March
- Chancellor raises £26 billion in Autumn Budget
- AI tools giving risky consumer advice, warns Which?
- Advisory fuel rates for company cars
Budget choices will determine success of UK’s growth mission, says CBI
Chancellor Rachel Reeves must use the Autumn Budget to make the bold decisions necessary to get the economy firing, says the Confederation of British Industry (CBI).
In its Budget submission, the business group says that businesses will judge the Budget a success or failure based on its ability to inject immediate momentum into a stuttering economy.
Ms Reeves will need to give both firms and consumers confidence that the government is prioritising long-term prosperity over short-term thinking in the Budget.
The Chancellor should be prepared to challenge party orthodoxy and take difficult decisions to deliver the long-term stability and growth the country needs, adds the CBI.
Rain Newton-Smith, CBI Chief Executive, said:
‘The government deserves huge credit for recognising the challenges faced by the economy and for showing determination to chart a course towards renewal that prioritises both public and private investment.
‘But the goal of a growing economy that raises living standards across the board won’t be achieved until real fiscal headroom is created and the cycle of short-term thinking that’s holding the country back is broken.
‘Yearly tinkering to close an ever-increasing fiscal gap simply isn’t a viable approach to a challenge this big.
‘We need to take tough decisions now or risk a downward spiral that sees us robbing Peter to pay Paul just to fund normal government expenditure and puts our growth prospects in peril. Short-term thinking leads to long-term decline, let’s not make that a political choice we live to regret.’
Internet link: CBI website
Self-employed overcounted for decades by official data
Official statistics have overstated the size of the UK’s self-employed population for two decades, according to the Institute for Fiscal Studies (IFS).
The share of national income flowing to those with the highest incomes has also been over-estimated, adds the think tank.
The mismeasurement stems from a longstanding error in the Survey of Personal Incomes (SPI) – a dataset created by HMRC, derived from tax returns and widely used across government for internal modelling.
The number of people with self-employment income has long been smaller than official statistics suggest. Between 2002/03 and 2017/18, the SPI overcounted the number of individuals with income from sole trading or partnerships by more than 500,000 each year on average – an overestimate of around 14%.
Rapid growth in self-employment is a more recent phenomenon than previously estimated. The SPI suggests a steady rise in self-employment since 2000, but the new data show that growth was in fact much slower before 2009/10, only matching growth rates seen in the SPI after the financial crisis.
Isaac Delestre, Senior Research Economist at the IFS, said:
‘The rise of self-employed work has been one of the most important features of the UK labour market over the last 20 years.
‘But these new data reveal a different narrative to the one told by official statistics – with the period preceding the financial crisis showing much slower growth in the self-employed population than we previously thought. That begs the question: what changed after the financial crisis that led to an acceleration in the growth of self-employment?’
Internet link: IFS website
AI will shrink headcount as hiring confidence remains at record low
One in six employers expect AI to shrink their workforce over the next year, with junior roles most at risk, according to a survey conducted by the Chartered Institute of Personnel and Development (CIPD).
Almost two thirds of those surveyed believe that clerical, junior managerial, professional or administrative roles are most likely to be lost because of AI.
The risk is highest in large private sector firms, where 26% expect headcount to fall, compared with 17% in the private sector overall and 20% in the public sector.
Among those who expect headcount to reduce because of AI in the next 12 months, a quarter expect to lose more than 10% of their workforce.
James Cockett, Senior Labour Market Economist at the CIPD, said:
‘AI is transforming the way many people work and has great potential for improving productivity and performance, but it also risks leaving many people behind.
‘Junior roles stand to be most affected by AI, but we need a national drive to retrain and upskill people of all ages and career stages. It’s crucial that we see rapid progress on the development of the Growth and Skills Levy, informed by genuine consultation with employers, to ensure workers are equipped with the skills for an AI-driven economy.’
Internet link: CIPD website
Christmas crafters urged to check tax rules
HMRC is urging those making money from Christmas crafts, seasonal market stalls, or selling festive items to check if they need to report their earnings.
As the festive season approaches, the tax authority has launched a Help for Hustles campaign.
This aims to remind anyone earning extra income from activities like making Christmas decorations, upcycling furniture for seasonal sales, or running market stalls, that they will need to tell HMRC if they earn more than £1,000.
The campaign’s guidance explains the important distinction between simply decluttering homes by selling unwanted personal belongings – which doesn’t usually require reporting to HMRC – and trading activities like making items to sell for profit, which may be taxable.
Anyone who earned more than £1,000 from side hustles in the 2024 to 2025 tax year will need to register for self assessment as a sole trader, file their return and pay any tax due by 31 January 2026.
Kevin Hubbard, HMRC’s Director of Individuals & Small Business Compliance, said:
‘Whether you’re making handmade Christmas decorations, selling upcycled furniture, or running a seasonal market stall, it’s important to understand when your festive side hustle becomes taxable trading.
‘Nobody wants an unexpected tax bill, so anyone earning more than £1,000 from their side hustle should tell HMRC. Our Help for Hustles campaign provides clear, straightforward guidance to help people get their tax right.’
Internet link: HMRC press release
Bank deposit protection limit to be increased to £120,000
UK bank customers will benefit from an increase to the maximum amount they would be reimbursed for if their bank were to fail from 1 December, the Prudential Regulation Authority (PRA) has confirmed.
From December, the deposit protection limit, which applies to the Financial Services Compensation Scheme, will protect up to £120,000 of a depositor’s money should their bank, building society or credit union fail.
This increases the limit from the current £85,000 which was set in 2017. It is also more than the previous PRA proposal of £110,000, which the regulator has changed due to consultation feedback and the latest inflation data.
This increase in the deposit protection limit is the latest in a series of regulatory thresholds to be updated by the PRA.
Sam Woods, Deputy Governor for Prudential Regulation at the Bank of England and CEO of the PRA said:
‘This change will help maintain the public’s confidence in the safety of their money. It means that depositors will be protected up to £120,000 should their bank, building society or credit union fail. Public confidence supports the strength of our financial system.’
Internet link: Bank of England website
UK inflation rate falls for first time since March
The UK inflation rate fell to 3.6% in the year to October, according to the latest data from the Office for National Statistics (ONS).
October’s decline was led by a smaller rise in gas and electricity prices compared with a year ago as well as a drop in hotel prices, the ONS said.
Core inflation, which excludes energy and food, was 3.4% in October, down from 3.5% in September. However, food and drink inflation rose to 4.9% in October, up from 4.5% in September.
This is the first time the rate has fallen since March and the lowest the rate has been since the year to June. But it remains above the Bank of England’s 2% target.
Ben Jones, Lead Economist at the Confederation of British Industry, said:
‘Inflation eased in October, broadly in line with the Bank of England’s expectations.
‘With Q3 GDP figures confirming a weak growth backdrop, and the labour market continuing to soften, today’s figures add to the evidence that price pressures are gradually subsiding.
‘Combined with the likelihood of further fiscal consolidation measures at the Budget, the data should give the Bank’s Monetary Policy Committee confidence that inflation risks are diminishing.
‘If this trend continues, the case for an interest rate cut in December looks increasingly compelling.’
Internet link: ONS website CBI website
Chancellor raises £26 billion in Autumn Budget
Chancellor of the Exchequer Rachel Reeves set out tax-raising measures worth up to £26 billion in the Autumn Budget.
The increases will be achieved through a range of measures, including extending the freeze on Income Tax thresholds for a further three years.
Ms Reeves also announced extra spending increasing to £11.3 billion in 2029/30, including an extra £9 billion on welfare.
Despite the uplift in spending the Chancellor has more than doubled her fiscal headroom from around £10around to around £22 billion, according to the Office for Budget Responsibility (OBR).
The OBR overshadowed the Chancellor’s speech with the accidental publication of its main measures prior to the Budget being announced in Parliament.
On Income Tax the personal allowance, the higher rate threshold and additional rate threshold are frozen at £12,570, £50,270 and £125,140, respectively, until 2030/31.
Taxes on property, dividend and saving income – which currently face no equivalent of National Insurance contributions (NICs) – will be increased by up to 2%.
From April 2029, the government will charge employee and employer NICs on any pension contributions made via salary sacrifice above £2,000 a year
The Budget also halves Capital Gains Tax relief for company owners selling their businesses to Employee Ownership Trusts from 100% to 50%.
In addition, the Budget introduced a High Value Council Tax Surcharge on homes worth more than £2 million, while protecting those on low incomes.
Individual Savings Accounts (ISAs) will be reformed from April 2027 when the annual cash limit will be set at £12,000, within the overall annual ISA limit of £20,000.
The Chancellor also took action to cut £150 off energy bills, freeze rail fares and end the two-child benefit cap.
The government is extending the 5p fuel duty cut until the end of August 2026 with rates then gradually returning to March 2022 levels by March 2027.
Ms Reeves said:
‘I can tell you today that, for every family we are keeping our promise to get energy bills down and cut the cost of living with £150 taken off the average household energy bill from April.
‘Money off bills, and in the pockets of working people. That is my choice.’
Internet link: GOV.UK
AI tools giving risky consumer advice, warns Which?
AI tools including Chat GPT, Gemini and Meta AI are giving inaccurate, unclear and risky advice which could prove costly if followed, warns consumer champion Which?.
Research showed that around half of UK adults are now using AI tools to research topics including personal finance, the law and health.
Which? tested six AI tools – ChatGPT, Google Gemini, Gemini AI Overview (AIO), Microsoft’s Copilot, Meta AI and Perplexity – to establish how well they could answer common consumer questions.
Meta AI received the worst score in Which?’s tests, achieving just 55% overall.
ChatGPT, which is the most used tool according to Which?’s survey, came second to bottom with an overall score of 64%,
Perplexity topped the table with 71%. It received the highest scores for accuracy, relevance, clarity and usefulness of any of the tools on test.
Andrew Laughlin, Which? Tech Expert, said:
‘Everyday use of AI is soaring, but we’ve found that when it comes to getting the answers you need, the devil is in the details. Our research uncovered far too many inaccuracies and misleading statements for comfort, especially when leaning on AI for important issues like financial or legal queries.
‘When using AI, always make sure to define your question clearly, and check the sources the AI is drawing answers from. For particularly complex issues, always seek professional advice – particularly for medical queries, before making major financial decisions or embarking on legal action.’
Internet link: Which? website
Advisory fuel rates for company cars
New company car advisory fuel rates have been published and took effect from 1 December 2025.
The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.
The advisory fuel rates for journeys undertaken on or after 1 December 2025 are:
| Engine size | Petrol |
| 1400cc or less | 12p |
| 1401cc – 2000cc | 14p |
| Over 2000cc | 22p |
| Engine size | Diesel |
| 1600cc or less | 12p |
| 1601cc – 2000cc | 13p |
| Over 2000cc | 18p |
| Engine size | LPG |
| 1400cc or less | 11p |
| 1401cc – 2000cc | 13p |
| Over 2000cc | 21p |
HMRC guidance states that the rates only apply when you either:
- reimburse employees for business travel in their company cars
- require employees to repay the cost of fuel used for private travel.
You must not use these rates in any other circumstances.
The Advisory Electricity Rate for fully electric cars is below. Electricity is not a fuel for car fuel benefit purposes.
| Advisory Electricity Rate | |
| Home Charger | 7p |
| Public Charger | 14p |
If you would like to discuss your company car policy, please contact us.
Internet link: GOV.UK AFR
