Autumn Budget 2025: Key Impacts for Energy, Defence, and Technology

Written By Zara Ward

The Chancellor’s Autumn Budget 2025 set out a fiscal plan to stabilise public finances while signalling continued investment in energy security, innovation, and national infrastructure [1]. Below, we summarise the key announcements affecting Deecon Consulting’s core sectors. 

1. Personal Taxation  

National Insurance (NI) and income tax thresholds will remain frozen for a further three years beyond 2028. This will gradually move more earners into higher bands, increasing tax receipts without rate rises [2]. 

2. Energy and Utilities 

Energy policy was central to this year’s Budget, with measures which aim to address affordability, reform, and long-term delivery [1].  

  • Bill Relief: Removal of the Energy Company Obligation (ECO) and reduction in Renewables Obligation (RO) costs could deliver average annual bill savings of ~£150 per household, shifting environmental charges to general taxation [3]  

  • Nuclear Expansion: The Chancellor confirmed Wylfa as the UK’s first Small Modular Reactor (SMR) site and announced an accelerated nuclear approvals process, signalling major-project opportunities in this space [4]  

  • Fiscal Reform: The Energy Windfall Tax becomes a permanent feature of government policy, providing fiscal certainty for oil and gas operators while influencing long-term investment decisions across the wider energy ecosystem [5]  

3. Defence and Security 

Defence spending will rise by £5 billion in 2025–26, aimed at supporting Armed Forces readiness and long-term programme stability [6].  

  • Estate Modernisation: Capital investment should enable upgrades to defence estates, energy systems, and secure facilities  

  • Supply Chain Resilience: Renewed focus on domestic production to strengthen sovereign capability across defence, aerospace, and engineering 

  • Digital Resilience: Additional funding to bolster cyber security and data-driven operations, supporting the Ministry of Defence’s digital transformation 

4. Transport and Infrastructure 

For the first time in 30 years, the Government announced a one-year freeze on regulated rail fares, estimated to save commuters over £300 per year. The move is designed to ease cost-of-living pressures, while encouraging rail use amid ongoing infrastructure modernisation [7] . 

5. Telecoms and Digital Infrastructure 

The Budget renewed Labour’s commitment to national gigabit broadband rollout, introducing new rights for homeowners to request faster broadband [8].  

6. Technology and Innovation 

A total of £2 billion has been committed to AI and digital sovereignty, alongside a planned rise in R&D investment to £22.6 billion by 2029–30, boosting the UK’s innovation capacity [8].  

Technology announcements also included: 

  • £300m designated for improving patient care technology in the NHS 

  • Plans to deploy digital ID technology to support tax collection and immigration control  

Conclusion 

While the Autumn Budget avoids immediate large-scale economic stimulus, it provides clear signals on the Government’s priorities: sustaining momentum on energy transition, digital transformation and defence readiness.  

For Deecon’s clients, the focus now shifts to delivery and compliance, ensuring organisations can adapt to evolving government priorities in a constrained fiscal environment. 

Words by Connor Ovenstone

Edited by Anna Pringle

Zara Ward
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