UK Government Autumn Budget 2026

On 28 October 2026 the UK Government Chancellor, John Healey, presented his first Budget to the UK Parliament. Billed as giving families and businesses ‘breathing space’ from rising costs, it left the rates of VAT and National Insurance unchanged alongside static Income tax rates for employment and self-employed income. Even so the government’s own figures show its tax measures raising around £7 billion a year by 2031-32.

Headlines included:

• A further 2% rise in Income tax rates on savings and property income from 6 April 2027

• Plans to halve the Business Asset Disposal Relief limit to £500,000 and introduce a 10% Founders’ Relief from 6 April 2027

• Plans to reform how capital company distributions are taxed from April 2028

• Increases and decreases to plant and machinery capital allowances

• A more generous Trading Allowance from 6 April 2027

• The cash ISA limit kept at £20,000 with a new First Time Buyer ISA from April 2029

• A 3.9% rise in the National Living Wage to £13.21 an hour from 1 April 2027

• A £100 Household Energy Payment for Council Tax bands A to D in England from January 2027

You can read our full Autumn Budget report via the following link:-

Autumn Budget Report

The Chancellor returned to the phrase “breathing space” throughout his speech and it is worth noting that this is temporary. Tax increases for savers, landlords and business owners begin in April 2027 with further reforms in 2028 and 2029.

Further Budget announcements will be made on 17 November and 3 December 2026 in relation to taxes unique to Wales and Scotland respectively.

Now is the time to plan, as acting before April 2027 may make a real difference.

Every tax position is different, and the same Budget measure can affect two people in very different ways. If you would like to talk through how the Budget affects you, your family or your business, please get in touch. We would be glad to help.