What tech workers I place need Autumn Budget 2025 to deliver

Here’s 10 bold ways the chancellor can elevate the IT jobs landscape. But only one thing will silence the ‘umming and erring’ from uncertain technology hirers.

With Autumn Budget 2025 looming for the UK’s technology workers on November 26th, I’ve been invited by Free-Work as a recruiter of those workers to pinpoint what a truly groundbreaking budget that elevates the technology jobs landscape would contain.  

And let’s go big and bold or go home!

First, though, a quick caveat.

This really is me in ‘blue sky thinking’ mode, writes Matt Collingwood, managing director of VIQU-IT, a recruitment agency placing technology workers across the UK.

Translated? The likelihood of any of my ten bold ways Autumn Budget could boost tech workers, below, being adopted is pretty slim.

That said, most of these ten announcements that would ultimately elevate the IT job landscape relate to things that prior chancellors have used budgets to unveil or touch upon.

Ten bold ways Autumn Budget 2025 can boost technology workers

1. The chancellor should think without limits and avoid short-term measures.

2. Turn down growth-stunting tax increases on UK companies.

3. Address AI, and its power to make and break jobs.

4. Explore my call for an ‘AI tax.’

5. Develop specialist industries so the UK can stop being a generalist.

6. Focus on making the UK a leader of one ‘darling’ tech-driven sector.

7. Incentivise UK employers to hire the under-25s.

8. Refrain from cutting the VAT threshold.

9. Repeal the IR35 off-payroll working rules that hurt IT contracting.

10. Majorly boost tech employer confidence.

1. Think without limits, chancellor

I believe that by thinking radically and creatively, without limitations, regarding tech employment, IT skills, and the frameworks around jobs and key economic sectors, chancellor Rachel Reeves could unleash a potentially seismic upgrade for technology working

In addition, the chancellor should also play the long game, departing from the 6-12 month plans we often see at budgets, and ensuring any measures have no truck with short-termism.

2. Next, avoid growth-stunting tax measures

My concern and expectation for this month’s fiscal statement from HM Treasury’s boss is that it will focus on tax increases.

Over my almost 30 years in tech recruitment, I’ve seen significant tax rises, and most often on items like alcohol and tobacco.

The logic is that by taxing these items more, people consume less. Well, if that rationale holds, why would increasing taxes on businesses and employers drive growth?

For tech sector freelancers and small businesses, this is particularly relevant. As we approach 2026, many tiny technology companies are operating with tight margins, often juggling multiple clients and projects.

Three ways Autumn Budget tax increases would sting tech start-ups

Therefore, tax increases at Autumn Budget 2025 could make it harder for IT-driven companies to:

• Invest in skills;

• Hire staff;

• Grow their operations or expand their business.

Another quick caveat.

My next few proposals may involve additional government spending to put in place incentives.

But the aim is worth it — demonstrable improvements in the economy, more jobs, better-skilled workers, and a stronger UK presence in specialist industries, like Artificial Intelligence (AI).

3. Chancellor, address AI’s impact on the jobs market

The challenge we face, and one that is likely only five years away, is that AI will create significant disruption in the UK labour market.

Only on Monday (November 10th 2025), a CIPD study warned that one in six employers will cut jobs over the next year due to AI.

Top six jobs threatened by AI (includes help desk support)

Traditional roles such as customer service, help desk tech support, sales, administrative tasks, and bank clerks are at the front of the redundancy line.

While some hiring might still occur in and around these six roles, AI systems taking over their main functions may make them largely redundant compared to today.

At the very least as a tech worker, you will almost inevitably face some disruption due to AI.

And while reskilling may allow some workers to find new opportunities, it is plausible that overall employment levels could decline, creating a potential shortfall in tax revenue.

4. Autumn Budget 2025 should explore an ‘AI tax’

On LinkedIn, I raised the question of whether a possible solution from the government on November 26th could be to start to look at taxing AI.

The details of such a model would take time to work out. But an AI tax could, for example, be linked to company turnover. While this month’s budget may be too soon to introduce concrete figures, the concept of taxing Artificial Intelligence could be explored by the chancellor as a way to manage expectations — and address the question of how tax revenues will be sustained in the future.

Perhaps Autumn Budget 2025 will look further ahead, beyond the usual six-to twelve-month horizon, to consider the long-term implications of AI on employment and public finances?

If it does, and I hope this chancellor favours taking a longer view, my proposal of exploring an ‘AI tax’ has got a fighting chance!

5. Rachel Reeves should develop specialist industries

Freelancers in the UK, particularly in IT, have fairly generalist technology skillsets.

That’s despite me quite often extolling the age-old wisdom that IT contractors ought to specialise if they want to command premium rates!

What tech companies want from job candidates as 2026/27 fast approaches

Well, as 2026/27 comes into sight, I can reveal that today’s engagers of technology freelancers are increasingly looking for people with deep, relevant industry and project experience.

In a buyer’s market, where supply exceeds demand, clients can, and do, raise their expectations.

From a national perspective, the UK has historically been quite generalist in its offerings too!

Our economy is heavily service-oriented, with global exports concentrated in areas like:

• Insurance;

• Banking;

• Finance.

But if Rachel Reeves truly wants to support long-term economic growth on November 26th, a key focus for the chancellor should be on developing specialist industries, where the UK can establish a global reputation.

For example, consider computer chips.

Computer contractors in the UK will immediately think of South Korea. Maybe Taiwan.

Automotive? That’ll bring Germany to their minds.

The UK has achieved success in technical sectors, but usually on a smaller scale and in a more generalist way.

Could the UK position itself as a global player in up-and-coming areas, create the potential for growth and international recognition?

Six up-and-coming tech sectors where the UK could make a name for itself

And by up-and-coming technology areas, I mean these six, for example:

• AI;

• Quantum Computing;

• Genomics;

• Bioengineering;

• Green Energy;

• Neurotechnology.

I’ll be honest, making the UK synonymous with any of these six ‘darling’ tech sectors would require Reeves to make an additional outlay this month. But I believe that’s what the chancellor should use her second budget to do.

6. Focus on making the UK a leader of one ‘darling’ sector like Green Energy

To achieve the desired effect — the UK dominating one nascent tech-driven industry — proactive government support would be required. ‘

Here are three measures that equate to proactive government support:

• Sizable tax incentives for businesses;

• Targeted funding;

• Investment in upskilling the workforce.

With these three measures, a ‘rising star’ industry underpinned by IT could really come into its own under the UK’s stewardship, competing on a global scale, and building a strong reputation for British expertise.

7. Autumn Budget 2025 should move to pay employers to hire the under-25s

Currently, among young people classified as NEET (‘Not in Education, Employment or Training’), 58% of those under 25 have never held paid employment.

Alarmingly, for many of these individuals, the likelihood of ever securing paid work after 25 is significantly lower.

This represents a complex and extensive social and economic challenge.

Many of these individuals face barriers that make them harder to employ. At the same time, taking into account the minimum wage for someone 25 or under, combined with employer costs such as pensions, national insurance contributions, and basic office infrastructure, an employer may spend as much as £33,000 on a low-skilled worker.

It’s easy to see why many companies hesitate to hire!

What incentives could make hirers realise that the kids are alright?

A radical but practical solution would be for Autumn Budget 2025 to actively incentivise employers to take on young workers.

Such incentives could include:

• Covering a sizable portion of a young person’s salary;

• Removing employer NICs obligations for employees aged 18–25, and

• exempting the under-25s from other HMRC liabilities;

• Allowing the under-25s to be paid below minimum wage while still receiving a reasonable income.

If the chancellor announces any of these four incentives to hire young people, employers would find it significantly more cost-effective to take on these under-25-year-olds, and in some cases, could provide them with five-to-seven years of valuable commercial experience.

Over the long term, these young workers would be more likely to remain employed, contribute to the economy, and reduce reliance on benefits.

8. Reeves must resist a VAT registration threshold cut – else freelancers will be hit

An Autumn Budget 2025 measure reportedly under consideration by the chancellor is a downward revision to the VAT registration threshold, currently set at £90,000.

If a freelancer’s limited company exceeds this turnover, they must register for VAT.

Well, the whispers in Whitehall are around lowering the £90k threshold to somewhere between £50k and even as low as £30k!

For many freelancers, particularly those operating as their own limited company, their clients are VAT-registered and can reclaim VAT, meaning a VAT threshold cut wouldn’t add extra costs directly.

However, mandatory VAT registration would increase administration, hike accounting costs, and inflate the risk of costly mistakes, potentially putting freelancers under HMRC scrutiny.

Freelancers operating on a business-to-consumer basis could face a more direct burden.

Such limited company workers might need to raise their prices by 20% to cover VAT, which in the current economic climate could deter clients or erode margins.

From what I’m seeing, many technology freelancers already carefully manage costs and pricing. And any plunge in the VAT registration threshold could make doing business more cumbersome and less profitable.

9. Autumn Budget 2025 should repeal the IR35 off-payroll working rules

The one Autumn Budget wish of mine I least expect to be accepted by the chancellor, and yet it might be the most transformational, is the full repeal of the Off-Payroll Working rules (IR35).

When the responsibility for determining employment status was shifted to clients, first in the public sector in April 2017, then in the private sector in April 2021, the damage caused by IR35 truly began to accelerate.

A fundamental reshaping of IT contracting from an HMRC rule needs to be addressed

In the past four years, IR35 has fundamentally reshaped the technology contracting landscape, and not for the better.

Freelancers and contractors with IT skills have long been the backbone of the UK’s innovation economy. They drive digital transformation, deliver specialist expertise, and enable companies to scale and compete globally.

Yet IR35 (particularly its reformed versions of 2017 and 2021) has discouraged many clients from taking on independent contractors and freelancers at all.

The off-payroll working rules have created a culture of risk aversion among clients who fear engaging off-payroll talent, while simultaneously burdening recruiters and end-clients with endless compliance and governance requirements.

What would repeal of IR35 reform achieve?

If IR35 were fully repealed at the Autumn Budget, much of that risk perception would disappear overnight.

Contractors could focus on what they do best.

Businesses would regain the freedom to engage the talent they need without unnecessary legal and administrative complexity.

And the increase in contracting activity would naturally stimulate the wider economy and, through higher turnover from personal service companies, lead to greater contributions for HM Treasury via corporation and dividend taxation.

I can only hope that one day we will have a government bold enough to recognise the damage which the 2017 and 2021 frameworks have caused.

In the hope that Reeves feels bold on Wednesday November 26th, my message to the chancellor is:

Repeal IR35 in full, and restore fairness and freedom to the UK’s flexible workforce.

After all, that’s the same workforce that has quietly powered innovation, productivity, and growth for decades.

10. Majorly boost tech employer confidence, chancellor

As a tech recruiter who meets with hiring companies and organisations almost every day, and has done so for many years, I hear the same message repeatedly.

Confidence has evaporated.

Conversations with tech employers that used to centre around ambitious 12-to-24-month plans, new projects and services, and expansion strategies have been replaced by the ‘umming and erring’ of uncertainty.

Many business leaders now only plan six months ahead, because they simply don’t know what their operating environment will look like beyond that period.

Therefore, if Rachel Reeves truly wants to see the UK grow, the chancellor must use Autumn Budget 2025 to first and foremost focus on boosting confidence, because without it, no amount of tax tinkering or policy promises will move the dial.