TOP STORY: INCOME TAX RISE MAY BE ON THE CARDS

It’s looking increasingly likely that the government may increase income tax at its upcoming Autumn Budget, despite promising not to as part of its election manifesto.

Last week, The Guardian reported that the chancellor has been looking at hiking the basic rate* of income tax by 1p, which could apparently raise around £8 billion.

The government didn’t comment at the time. But in parliament this week, Keir Starmer was asked by leader of the Tory party, Kemi Badenoch, whether Labour would stick to its manifesto pledge not to raise income tax, national insurance or VAT.

She asked the same question in July, and the prime minister simply replied: “yes”. This week, he gave a rambly, roundabout answer and refused to directly answer the question.

Political commentators are now saying it’s becoming increasingly clear that the government has little choice but to raise income tax, as it looks to fill in a £30+ billion “black hole” in its finances. There simply aren’t enough other changes it can make to balance the books.

So what does this mean for me? It’s unclear right now whether the government will increase it at all, or, if it does, whether it will increase the ‘basic’ rate – the rate almost everyone pays – or the higher or additional rates, affecting wealthier workers.

The best thing you can do is be prepared – the Budget is coming on November 26th, so changes could start coming in after then. 

If you are low on spare cash, it could be worth working out now where you could be flexible with your finances, for example, by cutting down on subscriptions or by switching to a cheaper shop.

Source: AJ Bell

*The 20% rate of tax you pay on earnings between £12,571 and £50,270

TIP OF THE WEEK: GET A CHEAPER ‘PART AND PART’ MORTGAGE

Did you know that there are mortgages where first-time buyers can buy a house with just a 5% deposit, and get cheaper-than-average monthly repayments?

These are called ‘part and part’ mortgages, which means you pay part of your mortgage back as a normal (known as a ‘capital repayment’ mortgage, where you repay some of your home and some as interest), and some is interest-only.

That means your monthly repayments are cheaper, as you don’t have to pay any money back on part of your mortgage

Gen H, a modern mortgage lender, is offering a mortgage where you just need 5% deposit, and you can take out up to 80% of your mortgage as interest-only.

It’s designed to help people onto the housing ladder with a low deposit and affordable repayments, as often having a small deposit can lead to larger monthly costs.

The catch: It’s worth remembering that if you are just paying interest on your mortgage, the amount of your home that you actually own won’t increase. 

That means you are paying interest on the same sized mortgage for your whole term – so your payments won’t go down. That means you’ll end up paying more long-term.

Who these might be good for: People looking to get onto the housing ladder with a small deposit, who may be able to switch to a regular ‘capital repayment’ mortgage in future as their salary or savings increase.

DEAL(S) OF THE WEEK: Get up to £175 for switching bank accounts

A number of high street banks have launched free cash deals to anyone who switches their current account to them, plus other perks.

New deals we’ve spotted include:

  • Nationwide: offering a £175 cash bonus – no deadline 
  • Natwest: offering a £175 cash bonus – no deadline 
  • TSB: offering a £150 cash bonus + £30 cashback (£10 monthly for three months ) – Deadline 9/12/25

We’ve rounded up all the best deals on the market here, including up to £900 free cash from Barclays.

The catch: For most bank switching deals, you’ll need to actually transfer your existing current account to them, which means closing your old account. You usually can’t already be a customer of the new bank, either.

However, it should be easy as it is all carried out via the Current Account Switch Service. 

FROM THE REGULATOR: CRYPTO RULES CREATE ISA MESS

There’s a new ISA mix-up that’s got investors worried, and, once again, it’s been caused by poor communication between the finance regulator and the government.

As of this month, investors have been able to buy crypto ETNs (exchange-traded notes) inside their stocks and shares ISAs, under the watchdog’s rules.

But under separate HMRC rules, these won’t be allowed to be held in stocks and shares ISAs from next April – they will only be allowed in a very niche account, called ‘innovative finance ISAs’.

The trouble is, no platforms really offer these kinds of ISAs. So, what will investors do in April if they have bought crypto ETNs?

Well, in theory they will have to sell them – but we don’t think that will happen. This kind of situation has happened before, and HMRC has had to change its rules to prevent chaos.How does this affect me? If you’re buying crypto in your ISAs, it’s worth keeping an eye on these rules to see what you will need to do in April.

INVESTING INSIDERS FINANCIAL BOOK AWARDS 2025

INVESTING INSIDERS BOOK AWARDS DEADLINE TODAY

Investing Insiders is launching a first-of-its-kind Financial Book Awards this autumn, and the deadline is this evening?

Whether you’ve read a book that’s transformed your finances or written one to help others, we want to hear from you. Make sure to get your entry or nomination in by 23:59pm TONIGHT.

Shortlisted entries will be announced by 10 November 2025 and winning submissions will be announced by 10 December 2025. 🏆

Submissions will be judged by an expert panel of industry specialists, chaired by multi-award-winning financial journalist Moira O’Neill. 

Authors of the winning titles for each category will receive an engraved trophy and be featured as our top pick for 2025, as well as other prizes.

To enter, simply complete the Investing Insiders Financial Book Awards 2025 submission form.

Your Questions Answered

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