On 28 October 2026, Chancellor John Healey presented his first Autumn Budget to 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 wages 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 percentage point rise in Income Tax 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, and 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