Facing slow economic growth and a large deficit, Chancellor Rachel Reeves is set to deliver an Autumn Budget that seeks revenue while keeping major tax promises. This effort highlights a controversial topic: the daily cost of immigration, a complex and politically sensitive figure.
With no plans to raise income tax, National Insurance, or VAT, the Chancellor is turning to specific measures to fill the government’s coffers. The budget, due Wednesday, November 26, 2025, will face intense focus on public spending, including the daily multi-million-pound cost of the asylum system.
What Are the Key Revenue-Raising Measures?
The government plans to rely on sector-specific taxes and rule reforms. These measures are meant to bring in billions without affecting average workers’ pay through income tax increases.
The key expected announcements include:
- A new “Mansion Tax” will apply to homes in England worth over £2 million, potentially adding around £4,500 for 100,000 homeowners.
- A £2,000 annual cap on tax-free salary sacrifice pension contributions, a move projected to raise around £2 billion.
- A new 3p-per-mile tax for electric vehicle drivers to compensate for lost fuel duty.
- The extension of the sugar tax to milk-based sugary drinks, dubbed the “Milkshake Tax.”
Also Read: UK Autumn Budget 2025: Watch the Budget Statement live on Parliament Live Streaming
How Much Does Immigration Actually Cost Per Day?
The most frequently cited numbers deal with asylum support, highlighting a considerable daily cost to the state.
According to a BBC report from July 2025, hotel accommodation for asylum seekers cost the UK an average of £5.77 million per day between April 2024 and March 2025. Although this fell from last year’s £8.3 million per day, it is still a large amount. Other reports note broader financial effects, with an October 2025 committee finding the Home Office had “squandered” billions on asylum contracts, with costs tripling to more than £15 billion over ten years.
What is the Full Economic Picture?
Focusing solely on costs presents an incomplete picture. The economic effects of immigration are widely debated, including both obvious costs and contributions that are harder to measure daily.
While Talk.TV cited a July 2025 estimate that illegal immigration and asylum seekers could cost UK families £800 annually, other analyses emphasize fiscal gains. The November 2025 report noted that refugees joining the workforce may increase economic prosperity and taxes, showing that overall costs cover immediate support and long-term benefits.
Also Read: UK Autumn Budget 2025: How the Autumn Budget Could Push Accountants to Diversify?
