Budget 2026

How will the 2026 Budget affect your plans? 

Despite the negative impact of the war in the Middle East on the economy and government finances, the new Chancellor, John Healey MP, has met the fiscal rules on stability and investment - albeit with lower ‘headroom’. 

The Budget has raised some taxes, particularly on banks and gambling, but balance that seeking to protect incentives for investment in business of all sizes. 

The Chancellor has also announced immediate measures to tackle the rising cost of doing business as well as long term reforms, including tax devolution, to address structural issues. 

The key measures are; 

• NMW and NLW will be increased by 3.9%
• Reducing electricity costs for 10,000 businesses through the British Industrial Competitiveness Scheme
• The 5p fuel duty cut will be extended to July 2027
• The threshold for business rates relief for retail, hospitality and leisure will increase from £12,000 to £18,000
• Tax on income from property and savings will be increased by 4% in April 2027 (2% more than announced in Budget 2025)
• Rachel Reeves' ISA changes have been scrapped - £20k limit restored
• An increased levy on banks – additional 3% levy for 15 months
• EMI2 – doubling the generosity of CSOPs
• Capital Gains Tax Relief for founders - 10% lifetime rate up to £10million for founders of successful firms
• The lifetime limit for Business Asset Disposal Relief will be reduced to £500k
• Fiscal devolution. Increasing proportion of business rates and income tax revenue to be retained locally by the end of the decade

Get in depth analysis and your questions answered by our tax experts by joining our Budget webinar - Thursday 29 October at 10am.