28th October 2026
The Autumn Budget brings a range of announcements and changes that could affect businesses and individuals in the months and years ahead.
Our team has reviewed the Chancellor’s announcements and will be sharing our analysis of the key measures, what they mean in practice and the areas you may need to consider when planning ahead.
Chancellor John Healey delivered the Autumn Budget on Wednesday 28 October 2026, announcing a range of measures affecting household finances, employment costs, taxation and business investment.
With businesses and individuals continuing to face pressure from rising costs, the Budget focused on providing financial support while maintaining the government’s fiscal commitments.
For individuals, the announcements included changes to energy bills, savings and fuel duty. For businesses, measures affecting wages, business rates and access to investment funding could have implications for future financial planning.
We take a closer look at the key announcements and what they could mean for you.
Energy bills and household support
The Chancellor announced several measures aimed at reducing household energy costs.
These included the removal of standing charges on domestic gas bills, affecting approximately 23 million households. The government estimated that around two-thirds of households could save an average of £45 per year, although the overall impact will depend on individual gas consumption.
A £100 energy payment was also announced for approximately 20 million households in council tax bands A to D, alongside an extension of the temporary reduction in VAT on domestic electricity until July 2027.
The Chancellor said the VAT measure would reduce the annual energy price cap by approximately £50.
What this means for individuals: Households may benefit from lower energy costs, although the level of savings will vary. Those managing household budgets should consider how the changes affect their expected expenditure over the coming year.
Cash ISA allowance remains at £20,000
The Chancellor confirmed that the annual Cash ISA allowance would remain at £20,000, reversing previous plans to reduce the limit to £12,000.
This means individuals can continue to save up to the existing annual ISA limit without paying income tax on interest earned within the account.
What this means for individuals: The decision provides continued flexibility for tax-efficient savings. Individuals with substantial cash savings may wish to review how they use their annual ISA allowance as part of their wider financial planning.
Fuel duty freeze extended
The Chancellor extended the existing freeze on fuel duty until July 2027.
The measure will provide continued relief for motorists and businesses that rely on road transport.
Changes to mileage allowances for employees using their own vehicles for business purposes were also announced.
What this means for individuals and businesses: Employees claiming mileage expenses and businesses operating company vehicle or mileage reimbursement schemes should review the relevant rates and ensure their expense policies remain up to date.
Business rates relief for smaller businesses
The Chancellor announced an increase in the threshold for small business rates relief from £12,000 to £18,000.
The government estimated that approximately 70,000 smaller businesses could benefit from the change.
The measure could be particularly relevant to businesses operating from commercial premises, including retailers, hospitality businesses and independent service providers.
What this means for businesses: Eligible businesses may see a reduction in their property-related overheads. Business owners should review the rateable value of their premises and assess whether they qualify for relief once the detailed eligibility criteria and implementation dates are confirmed.
National Minimum Wage and National Living Wage Increase
The Chancellor confirmed a 3.9% increase in both the National Minimum Wage and National Living Wage, benefiting approximately 2.3 million workers from 1 April 2027.
The new hourly rates will be:
For employers, these increases will mean higher staffing costs, particularly in sectors such as hospitality, retail and social care.
What this means for businesses: Employers should review payroll budgets, staffing costs and cash flow forecasts ahead of April 2027 to ensure they are prepared for the new rates.
Businesses in hospitality, retail, care and other labour-intensive sectors may need to assess the wider implications for profitability and pricing.
Additional support for business investment
The Budget included further government support for business investment and economic growth.
The Chancellor announced an additional £20.4 billion for the National Wealth Fund and British Business Bank, with the aim of improving access to finance and encouraging investment.
The government also outlined measures intended to reduce administrative burdens and support entrepreneurship.
What this means for businesses: Companies considering expansion, capital investment or new projects should monitor the funding opportunities that become available and assess whether these could support their growth plans.
Additional taxation on banks
The Chancellor announced a temporary three-percentage-point increase in the surcharge on banking profits, applying for 15 months from January 2027.
The measure is intended to raise additional revenue to help fund government commitments.
Although this change directly affects the banking sector, businesses and individuals should monitor any wider implications for lending conditions and financial services.
Alongside the Budget, the Office for Budget Responsibility published updated forecasts for the UK economy.
Economic growth was forecast at 1.2% in 2026, followed by 1% in 2027, 1.6% in 2028 and 1.8% in 2029.
The Chancellor also reiterated the government’s commitment to meeting its fiscal rules and managing public borrowing.
For businesses, the economic outlook remains an important consideration when making decisions about investment, recruitment and future expenditure.
While the Budget introduced targeted support measures, businesses should continue to plan carefully for changes in operating costs and economic conditions.
The Autumn Budget introduced a number of measures that could affect financial planning over the coming months.
For private individuals, this is an opportunity to review household budgets, savings arrangements and tax-efficient financial planning.
For business owners, the announcements reinforce the importance of reviewing employment costs, business rates eligibility, investment plans and cash flow forecasts.
Employers should pay particular attention to upcoming payroll changes, while businesses operating from commercial premises should establish whether they could benefit from changes to business rates relief.
As further technical details become available, understanding how the measures apply to individual circumstances will be essential.
The full implications of the Autumn Budget will vary depending on personal circumstances, business structure and sector.
Although several announcements are intended to provide financial relief, the changes may also create new considerations for employers, company directors and individuals managing their finances.
Our team is here to help you understand what the Autumn Budget means for you or your business.
If you would like to discuss any of the announcements and how they could affect you or your business, please get in touch with the Thompson Jenner team.
