Budget 2025: Key points at a glance

Rachel Reeves has set out details of her second Budget since becoming chancellor.

A number of measures from the yearly tax and spending plan had already been announced in the days leading up to the statement.

Other measures were revealed by accident after the UK's budgetary watchdog mistakenly published its official forecast early.

Here is a summary of the main points.

• National Insurance (NI) and income tax thresholds frozen for extra three years beyond 2028, dragging more people into higher bands over time

• Amount under-65s can put into cash Isas (Individual Savings Accounts) capped at £12,000 a year from April 2027, with the rest of the £20,000 annual allowance reserved for investments

• 2 percentage point rise to the ordinary and upper tax rates on dividend income from April, and all rates on savings income from April 2027

• Cap limiting households on universal or child tax credit from receiving payments for a third or subsequent child to be scrapped from April

• Legal minimum wage for over-21s to rise 4.1% in April, from £12.21 to £12.71 per hour, with the wage for 18 to 20-year-olds rising from £10 to £10.85

• Basic and new state pension payments to go up by 4.8% from April, more than the current rate of inflation, under the "triple lock" policy

• Amount people can "sacrifice" from their salary - thereby avoiding NI on pension contributions - capped at £2,000 a year from 2029

• Help to Save scheme, which offers people on universal credit a bonus on savings, extended and expanded beyond 2027

• Properties in England worth more than £2m to face a council tax surcharge of £2,500 to £7,500, following a revaluation of homes in bands F, G and H

• Tax charged on rental income increased by 2 percentage points, from April 2027

• 5p "temporary" cut in fuel duty on petrol and diesel extended again, until September 2026, before it rises again over six month period

• A new mileage-based tax for electric vehicles and plug-in hybrid cars to be introduced from 2028

• Regulated rail fares for journeys in England frozen next year for the first time since 1996 (there have been periods when prices rose by less than inflation)

• Premium cars to be excluded from Motability scheme, which allows people on certain disability benefits to lease vehicles more cheaply

• Thresholds for NI paid by employers also frozen until 2031, increasing costs as wages rise over time

• Tax exemption for small packages from overseas retailers worth under £135 scrapped from 2029, following complaints it hinders UK businesses

• Remote gaming duty, paid on online casino betting, to rise from 21 to 40% from April 2026

• General betting duty, paid on sports betting, to rise from 15 to 25% online from April 2027, with an exemption for horse racing

• Green levies taken off energy bills and paid through general taxation, in a move the Treasury says will save households £88 a year

• It says a further £59 saving will be made by scrapping a customer-funded scheme helping low-income households insulate their homes

• Tax on sugary drinks extended to pre-packaged milkshakes and lattes from 2028, reversing an exemption when the tax was introduced in 2018

• Tax on tobacco to increase by 2% above the higher RPI rate of inflation

• Tax on alcohol, including draught drinks, will also increase by the higher RPI measure in February

• Office for Budget Responsibility (OBR) predicts the UK economy will grow by 1.5% this year, upgraded from a 1% forecast in March

• But the economy is now forecast to grow by 1.5% on average between 2026 and 2029, down from the previous estimate of 1.8%

• Inflation predicted to average 3.5% this year, before falling to 2.5% next year, and returning to the government's 2% target in 2027

• English regional mayors to be given powers to tax overnight stays in hotels and holiday lets, echoing existing plans in Scotland and Wales

• Training for apprentices under-25 will be made free for small and medium-sized companies

• Any 18 to 21-year-olds on Universal Credit not earning or learning for more than 18 months will be offered six-month paid work placements, and those not taking up the offer face being stripped of their benefits

• Planned tax on English universities' tuition income from overseas students will be charged at £925 per student per year, from August 2028

• Cost of a single NHS prescription in England frozen at £9.90 for another year (they remain free in Wales, Scotland and Northern Ireland)

• £5m will be dedicated to secondary school libraries and another £18m for improving and upgrading playgrounds across England

• Infected blood compensation will be made exempt from inheritance tax