The Labour Government’s November 2025 Budget arrived at a politically delicate moment. With economic pressures mounting, public frustration increasing, and internal tensions growing within the Parliamentary Labour Party (PLP), many commentators suggested this Budget was crafted not only to address the country’s finances but also to shore up political stability.

It has been argued in the media and by economic analysts that the Budget may have been as much about protecting the jobs of Keir Starmer and Chancellor Rachel Reeves as it was about protecting the jobs and livelihoods of working people.

Both leaders are now navigating a complex environment in which their hands are tied by a divided PLP, with competing ideological demands and pressure from within their own party shaping key policy choices. Against this backdrop, one central question remains: is this truly a Budget designed to support jobs, or do its measures work against working people and employers?

The extension of Income Tax and National Insurance thresholds to 2031 is one of the most important policies affecting employment and take-home pay.

Instead of increasing real wages, inflation-linked pay rises now push workers into higher tax bands — a classic stealth tax. Employers must offer larger nominal pay rises just to keep staff financially level, raising wage pressures without increasing productivity.

Impact on job creation and work incentives:

• Higher employment costs for businesses

• Less reward for progression and pay rises

• Reduced disposable income for working households

• Potential slowdown in consumer spending

This does little to stimulate job growth and may suppress hiring.

These changes increase the cost of taking profits, reinvesting into growth, or maintaining financial buffers. As a result, many business owners may:

• Delay expansion

• Reduce investment in innovation

• Slow hiring

• Tighten staff budgets

This works against the goal of boosting employment.

From April 2029, only the first £2,000 of pension contributions via salary sacrifice will be exempt from NI. This significantly reduces the rewards for long-term saving.

This matters because the UK is already struggling to attract and retain skilled professionals.

By reducing incentives, the Budget makes the UK workforce less competitive, particularly for high-demand, high-skill jobs where recruitment is already challenging.

A shrinking rental market leads to higher rents and reduced mobility for workers. When people cannot easily move for work:

• Recruitment takes longer

• Job vacancies remain unfilled

• Regional economies become less flexible

Housing affordability is central to jobs — and the Budget adds pressure rather than relieving it.

A Budget for jobs would:

• Reward working families

• Encourage returning to employment

• Support skills development

• Reduce barriers to work

This Budget largely targets redistribution, not job activation.

Although presented as a Budget to drive growth, the November 2025 Budget appears to prioritise political stability within the Labour Party over meaningful job creation. With Starmer and Reeves navigating a challenging internal landscape — often constrained by a Parliamentary Labour Party pulling in multiple directions — the resulting Budget feels more like a compromise than a coherent jobs strategy.

For working families, business owners and employees across the UK, the reality is clear:

• Taxes on work are rising

• Taxes on enterprise and investment are rising

• Incentives for skilled workers are shrinking

• Little is being done to stimulate employment directly

In many respects, this Budget seems less a “Budget for jobs” and more a Budget for political survival, with working people left to absorb its long-term effects.