- 24 November 2025
The Chancellor’s Autumn Statement is finally upon us, and after months of speculation, we are close to hearing the Chancellors choices confirmed. There has been plenty media coverage on what is likely to be included in recent days. Underneath the headlines there will be nuance and detail which is precisely why governance professionals should be alert to what the budget will mean for risk, compliance, and organisational resilience.
Budgets are often framed as fiscal events, but they are governance events too. They signal how government intends to steward institutions, manage risk, and respond to long-term pressures. For boards and governance teams, the challenge is to interpret policy shifts quickly and advise on their impact.
What to expect in the Budget
The Chancellor is widely expected to focus on three broad areas:
Fiscal discipline vs growth ambitions: The government faces a narrow path - maintaining credibility while funding investment. For governance professionals, this means preparing for potential changes in reporting requirements tied to incentives intended to accelerate business investment. Possible adjustments might be to full expensing and support for regional investment zones. Governance professionals will be alert to any changes that affect reporting standards, assurance requirements or the control environment around investment reliefs. When incentives expand, so does the importance of robust internal governance.
Tax strategy and household support: We can expect smaller, targeted measures including possible tweaks to ISAs, pensions, and employment rules. Support for lower income households are likely to feature and cutting the two child benefit cap has been widely trailed. Any adjustments will require rapid, accurate interpretation and communication within organisations that must comply promptly.
Public sector reform and efficiency: There is renewed emphasis across Whitehall on the effectiveness of public bodies. This may include performance frameworks, regulatory capacity reviews and potential restructuring of arm’s length bodies. For governance practitioners, this could lead to increased expectations around board composition, clarity of roles and evidence of decision making.
Governance considerations arising from the Budget
Several budget components have governance implications.
Risk oversight
Economic uncertainty means risk registers will need refreshing. Board conversations on resilience, inflation exposure and financial planning will become more significant if the Budget signals tighter conditions.
Regulatory expectations
If the Budget addresses technology, sustainability or financial conduct, organisations may face higher regulatory expectations. Boards should assess whether they have the right mix of skills to provide credible oversight.
Public accountability
Changes to public sector funding or structural reform invariably lead to heightened scrutiny. Institutions funded partly or entirely by the taxpayer will need to demonstrate that governance arrangements can withstand political and public examination.
The governance response
Governance professionals will play a central role in organisations responding to the budget: interpreting policy shifts, advising boards on risks and opportunities, and ensuring that organisations remain both compliant and trusted.
The institute will publish an updated view following an analysis of the Budget detail.