Autumn Budget 2026: Key announcements to know

Chancellor John Healey has delivered the 2026 Budget, outlining measures to ease household costs, support businesses and encourage economic growth. Here are some of the key announcements and what they could mean for your finances.

 

Economic outlook

The Office for Budget Responsibility (OBR) forecasts economic growth of 1.2% in 2026, rising to 1.8% in 2029. Government borrowing is expected to fall from 4.2% of GDP this year to 1.8% by 2030/31, with public sector net debt forecast to decline after peaking in 2027.

The Chancellor highlighted global uncertainty, including the conflict in Iran, and its impact on energy prices, interest rates and government borrowing costs.

 

Savings and personal taxation

• Cash ISAs: The annual allowance will remain at £20,000, reversing the previously announced reduction to £12,000.
• Income and dividend tax: Tax rates on savings and property income will increase by 4%, rather than the previously announced 2% rise outlined in 2025.
• Tax compliance: HMRC will receive additional funding and stronger powers to recover overdue tax.
• Bank surcharge: The bank surcharge will increase by three percentage points for 15 months from January.

 

Business owners and company directors

The Budget includes several measures to support businesses and encourage investment:

• Business rates: The small business rates relief threshold will increase from £12,000 to £18,000, benefiting an estimated 70,000 businesses. Adult gaming centres and vape shops will not qualify for relief.
• Founders’ relief: A new 10% tax rate will apply to qualifying lifetime gains of up to £10 million for business founders.
• Entrepreneur support new From April 2027, the tax-free allowance for trading or miscellaneous income will increase from £1,000 to £3,000. This applies to qualifying income generally, rather than just new ventures, alongside a new allowance to support young entrepreneurs.
• Business investment: An additional £20.4 billion will go to the National Wealth Fund and British Business Bank to support growing companies.
• Regulation and compliance: The Government will seek to reduce administrative burdens while strengthening HMRC’s tax collection powers and tackling VAT avoidance by online marketplace sellers.

The Government will also support UK aerospace development, invest a further £500 million in AI safety and security, and introduce new requirements for data centres concerning local investment and water supplies.

 

Pensions and inheritance tax

• Pension Tax Allowance: A new allowance will be introduced from April 2027 to protect pensioners from paying income tax solely because the State Pension rises above the Personal Allowance.
• Already in motion: Previously announced reforms remain relevant to retirement and estate planning. These include the planned inclusion of most unused pension funds in estates for inheritance tax purposes from April 2027, and the Government’s plan to move from the triple lock to a “double lock” for the State Pension from April 2030.
• State pension: Under the existing triple lock, the State Pension is due to rise by 3.9% in April 2027, taking the full new State Pension to £13,036 a year, above the current Personal Allowance.
• Individuals may wish to review their existing arrangements in light of the wider tax and economic environment.

 

Household costs and energy

Measures intended to reduce household costs include:

• Extending energy-related VAT relief to July, with an estimated £50 reduction in the annual price cap.
• Abolishing gas standing charges for 23 million homes, with estimated annual savings of £45 for two-thirds of households.
• Providing £100 energy payments to 20 million households in council tax bands A to D.
• Freezing fuel duty for until July 2027.
• Removing a levy funding hydrogen development from household bills and changing the pricing arrangements for older renewable energy schemes.

 

Other measures affecting businesses and households

• The Budget also includes an increase in the business mileage rate, new parental pay eligibility for self-employed fathers, higher machine games duty for higher-stakes machines and the removal of import tariffs on more than 100 products.

 

What does this mean for your financial plans?

The impact of the Budget will depend on individual circumstances. Business owners may wish to consider the implications for investment and succession planning, while individuals and families may benefit from reviewing their savings, retirement income and estate planning arrangements.

At Rosebridge, our financial planners can help you understand how changes to taxation and the wider economic outlook may affect your financial plans.

To discuss your circumstances, please contact the Rosebridge team.

Ramsbottom office – Email enquiries@rosebridgeltd.com or call 01204 300010
Chester office – Email enquirieschester@rosebridgeltd.com or call 01244 569141
Leeds office – Email enquiriesleeds@rosebridgeltd.com or call 0113 243 7100

 

Please note

This article is for information only and does not constitute advice.