Chancellor John Healey will deliver the Autumn Budget on Wednesday 28 October 2026. It will provide the first major tax and spending plan under Prime Minister Andy Burnham. However, nothing in the Budget is certain, so businesses and households should treat every rumour with care.
Why the Autumn Budget 2026 Matters
The economy entered 2026 stronger than many expected. UK GDP grew by 0.6% during the first quarter, then by 0.4% during the second quarter.
Government borrowing reached £18.3 billion in August, which came in £3.5 billion above the OBR forecast. Borrowing also ran £8.1 billion above forecast between April and August.
CPI inflation also reached 3.1% in August. Meanwhile, the Bank of England kept the Base Rate at 3.75% in September.
What the Government Has Already Confirmed
Several important changes already sit outside Budget speculation.
The Government is:
- Removing VAT from domestic electricity charges from 1 October 2026 to 31 March 2027
- Announcing a £2 cap on many single bus fares from January 2027
- Providing additional business rate support for pubs, social clubs and live music venues
From April 2027, most unused pension funds will also enter estates for Inheritance Tax purposes.
Additionally, the Cash ISA limit will fall to £12,000 for people under 65. However, the overall annual ISA limit will remain £20,000.
Could Taxes Rise?
Tax rises remain one of the main talking points of the Autumn Budget 2026.
Andy Burnham has pledged not to raise several major headline tax rates, including:
However, recent reports suggest ministers have discussed higher Capital Gains Tax (CGT) rates and wider reforms. Some proposals would move CGT rates closer to Income Tax rate. However, higher rates do not always produce higher receipts.
Could the Personal Allowance Rise?
The Personal Allowance currently stands at £12,570 and it will remain at this level until April 2031.
A higher allowance would reduce Income Tax for many workers, while also supporting household spending. However, the Treasury would need to fund the cost.
Recent reports have linked a higher Personal Allowance with a possible Capital Gains Tax reform. This would shift some tax from earnings towards investment gains. For now, this remains speculation.
Could Business Rates Change?
Business Rates look set to receive close attention, as the Government says it will announce further reforms at the Autumn Budget 2026.
Currently, qualifying businesses pay no Business Rates on properties with rateable values up to £12,000. Relief then reduces gradually between £12,001 and £15,000.
The Chancellor could raise the threshold for full Small Business Rate Relief. Reports have also suggested wider support for high street businesses. At the same time, the Government could ask larger warehouses or other properties to contribute more.
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This article is for general informational purposes only and does not constitute legal or financial advice. While we aim to keep our content up to date and accurate, UK tax laws and regulations are subject to change. Please speak to an accountant or tax professional for advice tailored to your individual circumstances. Pi Accountancy accepts no responsibility for any issues arising from reliance on the information provided.