Budget 2025: How will the changes affect the North East?
Written by Eve Naylor on 27th November 2025
Every financial year, the UK government releases its new budget, with this year’s focusing on the promise of change and growth for the future. But what does this mean for the North East?
Some of the most important changes include scrapping the “cruel” two-child benefit cap. This affects around 70,000 children in low-income families in the North East. This is a change which has been praised by many, including the Mayor of the North East Kim McGuinness who said on X: “Today is a major victory in our fight to end child poverty in the North East.” However, the Institute of Fiscal Studies (IFS) has previously estimated that this could cost £3.6 billion a year.
There will also be an extra £5 million spent on school libraries and £18 million to upgrade playgrounds.
The government has also proposed free apprenticeship training for small and medium sized enterprises. However, some employers have voiced concerns over this as many lack the incentive to take on new apprentices, rather than being unable to pay these costs. Similarly, shorter training courses have been promised, which could also lead to fewer employers taking on new trainees. As a result, many have argued that this could possibly lower industry standards, which would hit the North East particularly hard as there is always a high demand for apprenticeships in the area.
The Motability scheme has also come into question since the government plans to scrap tax breaks for this scheme which helps people with disabilities lease a new vehicle using their mobility allowance. This could possibly make it less accessible for those who need it, including those in the North East.
There have also been plans to introduce a pay-per-mile tax on electric vehicles which will be half the fuel duty rate on petrol cars. This has been met with confusion as many believe we should aim to move to electric vehicles in order to combat climate change. This is even more important for those in the North East as this region has a lower electric vehicle ownership rate compared to most of the UK.
Local councils are expected to set out a detailed response once the full implications of the budget have been confirmed.
