While we welcome the increased National Living Wage and the lifting of the two-child benefit cap, the Union is consulting to find out if tax changes could impact members. Image credit: ©HM Treasury.
The Chancellor announced increases in the minimum wage for working people over 16 and in apprenticeships, specifically:
- A 4.1% increase in the National Living Wage to £12.71 per hour for workers aged 21 and over
- An 8.5% increase in the National Minimum Wage to £10.85 per hour for workers aged 18-20
- A 6% increase in the National Minimum Wage to £8 per hour for workers aged 16-17 and those on apprenticeship schemes.
Reeves also announced the lifting of the two-child benefit cap from April next year – lifting 450,000 children out of poverty – and more funding for the NHS.
We warmly welcome these measures, which are key asks for the trade union movement and Labour-affiliated unions.
Targeted measures to address the cost of living
Measures to address the cost of living announced today include the first rail fare freeze in 30 years, extending the 5p cut in fuel duty to 2026, an NHS prescription freeze, and changes to energy levies that are expected to reduce the average household energy bill by £150.
The Chancellor further announced a council tax surcharge for properties worth over £2 million from 2028, and a consultation on how the tax system can “better back entrepreneurs.”
To support over 750,000 retail, hospitality and leisure (RHL) businesses, the Chancellor also announced permanently lowering RHL business rates multipliers.
These measures build on the Chancellor’s first budget statement in 2024, which provided targeted support for the creative industries such as:
- A 2.6% increase in Department for Culture, Media and Sport funding
- £3 million to expand the Creative Careers Programme
- Business rates relief for grassroots music venues and hospitality.
It also included money for 30 hours of free childcare and breakfast clubs in schools.
What you hope to see from a Labour Government
Responding to the Autumn Budget 2025, Musicians’ Union General Secretary Naomi Pohl said:
“This Budget contains measures that you hope to see from a Labour Government, lifting children out of poverty and increasing the National Living Wage and National Minimum Wage.
“We need to ensure that wealth redistribution happens in the music industry too, and I’m glad to hear the Chancellor talk about keeping money in people’s pockets in the UK when so much of the value our members generate goes to major record labels and big tech firms based overseas.
"In our conversations, the Chancellor indicated a clear understanding of the issues affecting members such as music education, touring in the EU and BBC Charter renewal and we will continue to press Government on these issues as well as arts funding."
Seeking clarification on tax changes that could impact members
Also in the Budget were a higher business tax rate on the most valuable properties with ratable values of over £500,000, and a 2% increase in the ordinary and upper tax rates on dividend income.
The Union will be consulting with trade bodies and our tax advice partner, Musicians’ Tax Advisor, to find out if and how these may affect members.
About the Budget
The Budget is a statement made by the Chancellor of the Exchequer to Parliament outlining the government’s plans for tax and spending.
It usually happens once a year in the autumn. Some of the measures announced will apply on the same day, and others need to be passed by Parliament in the form of “ways and means resolutions” and/or legislation called the Finance Bill.
Learn more in this explainer from the House of Commons Library.
The full text of the Autumn Budget is available via HM Treasury.