The Autumn Budget, delivered on 28 October 2026 by the newly appointed Chancellor of the Exchequer John Healey, is a targeted “breathing space” budget aimed at easing cost-of-living pressures resulting from the Middle East conflict without imposing broad-based tax hikes on employment.
A direct breakdown of the core policies and changes outlines who wins, who pays, and how the broader economy is tracking:
For Households & Everyday Expenses
- Energy Bill Support: Twenty million households in council tax bands A to D will receive a one-off £100 energy payment in January 2027.
- Energy Tariffs: The temporary 0% VAT rate on domestic electricity is extended to 30 June 2027. The standing charge on gas bills is completely scrapped and shifted to unit rates, saving 60% of households roughly £45 annually.
- Fuel Duty: The 5p fuel duty cut is extended until July 2027.
- Wages: The National Living Wage will increase by 3.9% to £13.21 per hour.
- State Pensioners: A new Pension Tax Allowance starting 6 April 2027 ensures low-income pensioners whose only income is the State Pension will remain entirely shielded from paying income tax.
For Savers & Property Investors
- Savings & Rental Surcharge: Tax rates on property and savings income will increase by an additional 2% from April 2027. This brings the total rates to 24% (basic), 44% (higher), and 49% (additional). Dividend and employment taxes remain unchanged.
- ISA Limits: The government reversed a planned cut to the Cash ISA allowance, keeping it fixed at £20,000.
- First-Time Buyers: A new First Time Buyer ISA will launch in April 2029. In the meantime, the Lifetime ISA withdrawal penalty is cut to 20% for buyers purchasing homes above the £450,000 limit. A new “Your First Home” equity scheme is also set to launch.
For Businesses & Corporate Sectors
- Bank Surcharge: Banks will bear the brunt of short-term funding with a 3% increase to the bank profits surcharge (rising to 6%) for 15 months from January 2027.
- Business Rates Relief: High street premises will see small business rates relief thresholds jump from £12,000 to £18,000, exempting nearly half of UK high street shops, gyms, and restaurants. High-limit gambling premises and vape shops are excluded from this relief.
- Founders’ Relief: A new relief keeps Capital Gains Tax at 10% for qualifying entrepreneurs selling business shares up to a £10 million lifetime limit, while the Business Asset Disposal Relief limit falls to £500,000.
- Gambling Tax: Taxes on higher-stakes gambling machines will increase from 20% to 25%.
