Autumn Budget 2026: what the key announcements mean for your money 

Today, Wednesday 28 October, Chancellor John Healey has delivered his first Budget. It's also the first fiscal event since Andy Burnham became prime minister. 

Setting out his Budget, Healey stated it was one "built on fiscal discipline, which matches immediate action today with clear direction for the future."  

He also stated his Budget would give households “breathing space” from rising costs, with help on energy bills, while raising some taxes, including on savings and property income and on banks. 

Alongside the Budget, the Office for Budget Responsibility (OBR) published its Economic and fiscal outlook (EFO).  

It now expects the economy to grow by 1.2% this year, up from the 1.1% it forecast in March. But it expects growth to slow to 1% next year. It expects inflation to peak at 3.8% in early 2027, and government borrowing to fall from 4.2% of GDP this year to 1.8% by 2031/32. It also forecasts the government will spend an average of £14 billion a year more on debt interest than it expected in March.

We explain what's changing and when, so you can see how it affects your money. 

What is the Autumn Budget? 

The Autumn Budget is the government's main announcement on tax and spending for the year ahead. The chancellor delivers it to MPs in the House of Commons, and the shadow chancellor responds. 

On the same day, the OBR publishes its economic and fiscal outlook. The OBR is the independent body that checks the government's figures and forecasts growth, inflation, and borrowing. 

Some changes announced in today’s Budget will start straight away, often at midnight. Most start later, usually from the new tax year on 6 April. We've included the start date for each change below. 

Autumn Budget 2026: At a glance 

What are the key announcements in the 2026 Autumn Budget? 

We'll now explore the main announcements in the Autumn Budget in more detail and what they mean for you. 

Income tax 

Today, the chancellor confirmed there will be no increase to the headline rates of income tax. The Budget doesn't announce any change to the personal allowance or income tax bands. 

The Trading Allowance, which lets you earn some income from things like side work or selling tax-free, will triple from £1,000 to £3,000 from 6 April 2027. 

The tax-free personal allowance remains at £12,570. You pay 20% basic-rate tax on income above that, 40% higher-rate tax above £50,270, and 45% additional-rate tax above £125,140. Scotland sets its own bands. 

These thresholds have stayed the same since April 2021. Last year's Budget extended the freeze until the end of the 2030/31 tax year. 

When thresholds are frozen and wages rise, more of your income is taxed, and more people move into higher tax bands. This is often called 'fiscal drag'. 

The personal allowance also shrinks by £1 for every £2 you earn over £100,000. This creates an effective 60% tax rate on income between £100,000 and £125,140. 

National insurance 

The chancellor confirmed there will be no increase to the headline rates of National Insurance. 

Employees pay National Insurance (NI) at 8% on earnings between £12,570 and £50,270, and 2% above that. Self-employed people pay Class 4 NI at 6% on profits in the same band, and 2% above it. 

Employers pay 15% on each employee's earnings above £5,000 a year. Like income tax, these thresholds are frozen until the end of the 2030/31 tax year.

Dividend tax and capital gains tax 

Dividends are payments companies make to their shareholders. If you hold shares outside an ISA or pension, the first £500 of dividends each year is tax-free. 

Above that, dividend tax rose in April 2026 to 10.75% for basic-rate taxpayers and 35.75% for higher-rate taxpayers. The additional rate stayed at 39.35%. 

Today, the chancellor confirmed there will be no change to dividend tax rates. 

Capital gains tax (CGT) is the tax you pay on the profit when you sell an asset, such as shares or a second property. The first £3,000 of gains each year is tax-free. Above that, you pay 18% if you're a basic-rate taxpayer and 24% if you're a higher or additional-rate taxpayer. 

Today's Budget doesn't change the main rates of CGT. 

The chancellor announced a new Founders' Relief from 6 April 2027. Qualifying founders of high-growth, innovative companies will pay a 10% CGT rate on up to £10 million of lifetime gains. 

The lifetime limit for Business Asset Disposal Relief, which gives a reduced 18% CGT rate when you sell all or part of a qualifying business, will fall from £1 million to £500,000 from 6 April 2027. 

For example, a higher-rate taxpayer selling their business with a £1 million gain from April 2027 would get the 18% rate on the first £500,000 only. The remaining £500,000 would be taxed at 24%, adding £30,000 to their bill.

Tax on savings income 

It was announced that tax rates on savings income will rise by a further two percentage points from April 2027, on top of the two-point rise already planned.

This means savings income above your allowance will be taxed at 24%, 44%, and 49%. 

You can still earn some interest each year without paying tax on it. Last year’s Budget had already set these rates to rise by two percentage points from April 2027, to 22%, 42%, and 47%. Today’s announcement adds a further two points on top.

The personal savings allowance lets basic-rate taxpayers earn £1,000 of interest a year tax-free, and higher-rate taxpayers £500. Additional-rate taxpayers get no allowance. 

Interest above the allowance is taxed at your income tax rate.

Interest earned in a cash ISA isn’t taxed and doesn’t count towards your allowance.

State pension 

Today, the chancellor announced a new pension tax allowance.  

From 6 April 2027 to 5 April 2030, pensioners whose total income is no more than the full new state pension won’t pay income tax. For those with income just above that level, the allowance will be gradually withdrawn. 

Now, following today's announcement, a pensioner whose only income is the full new state pension will pay no income tax on it, even if it rises above the £12,570 personal allowance.  

Today, the chancellor also reiterated the government's commitment to changing the Triple Lock.

The triple lock raises the state pension each April by whichever is highest: inflation, average earnings growth or 2.5%.  

The Triple Lock stays in place until April 2029. From April 2030, the state pension will rise by whichever is highest of 2.5%, inflation, or the amount needed to keep its value relative to earnings as reached in April 2029.

ISAs and savings 

An individual savings account (ISA) lets you save or invest without paying tax on the interest, dividends, or gains.  

You could pay up to £20,000 a year across one or more ISAs. The Lifetime ISA limit is £4,000 a year, and the Junior ISA limit is £9,000. 

Last year’s Budget announced that from 6 April 2027, people under 65 would only be able to put £12,000 a year into a cash ISA. The rest of the allowance must go into a different type of ISA. If you're 65 or over, you can still put the full £20,000 into a cash ISA. 

Today, Healey has announced that the plans to limit the amount under 65s could put into a cash ISA to £12,000, set to come in from 6 April 2027, will not go ahead.

The government will also work with the investment industry to explore a new incentive for people opening a stocks and shares ISA for the first time. From April 2029, a new First Time Buyer ISA will replace the Lifetime ISA for new savers (see first-time buyers below). 

Property and mortgages 

First-time buyers

Today, the chancellor announced a new £4.7 billion Your First Home equity loan scheme from April 2027, to help around 70,000 first-time buyers in England. It will offer government equity loans of up to 20% of a home's price, with a deposit from 2.5%, and the loan will be interest-free for the first five years. 

Household income caps will be £110,000 outside London and £140,000 in London. Price caps will be based on local median prices, with caps of £650,000 in inner London and £500,000 in outer London. 

For example, a first-time buyer purchasing a £300,000 home through Your First Home could put down a deposit of £7,500, with a government equity loan of up to £60,000. 

A new First Time Buyer ISA will replace the Lifetime ISA for new savers from April 2029. You'll be able to save up to £4,000 a year and get a 25% government bonus, capped at £20,000, towards a first home worth up to £450,000. There will be no upper age limit, and existing Lifetime ISA holders can keep using their accounts. 

From 29 October 2026, the charge for using Lifetime ISA money to buy a first home above the £450,000 price cap will fall from 25% to 20%. 

Landlords 

It was announced that tax rates on property income will rise by a further two percentage points from April 2027, on top of the rise already planned. This means property income will be taxed at 24%, 44% and 49%. 

Now, following today's announcement, a basic-rate landlord with £10,000 of taxable rental profit would pay £2,400 in tax a year, compared with £2,200 at the previously planned rate of 22%. 

From April 2027, landlords in England, Wales, and Northern Ireland will pay more tax on rental income, with new property income rates of 24%, 44% and 49%.

Council tax 

Today, the government confirmed it will introduce a deferral scheme and a series of discounts and exemptions for the High Value Council Tax Surcharge. Properties left empty and unoccupied for 12 months or more will pay a 100% premium. 

From April 2028, owners of homes in England worth £2 million or more will pay a High Value Council Tax Surcharge on top of their council tax. It starts at £2,500 a year and rises to £7,500 for homes worth over £5 million. 

Energy bills

One of the standout measures announced today was a £2.6 billion Household Energy Payment. Up to 20 million households in England in council tax bands A to D will receive a £100 payment from January 2027, delivered through the council tax system.  

The devolved governments will receive funding to provide similar support.  

The government has asked Ofgem to abolish gas standing charges, which currently average £108 a year, aiming for the end of 2027. Suppliers will recover the costs through gas unit rates instead.

The government also plans to reform electricity standing charges, with details due next year. 

On top of this, Healey announced the removal of VAT from electricity bills will be extended to July 2027 and expected to take around £50 off the annual Ofgem price cap in April 2027.

For businesses, the new British Industrial Competitiveness Scheme will cut electricity bills by 20% to 25% for over 10,000 energy-intensive manufacturers from April 2027.

Bank surcharge

Today, the chancellor announced that the bank surcharge will rise by 3% up to 6% from January 2027 and will last for 15 months. He said the rise will be time-limited and will help fund support with energy bills. 

The bank surcharge is an extra tax banks pay on their profits, on top of corporation tax. Before today's announcement, it was 3%, on top of the 25% corporation tax rate. 

The surcharge is paid by banks rather than their customers.

Businesses

The chancellor announced a number of measures for businesses.  

From April 2027, the threshold for 100% small business rate relief for qualifying retail, hospitality, and leisure properties in England will rise from £12,000 to £18,000. The threshold for tapered relief will rise from £15,000 to £21,000. This takes around 70,000 more high street businesses out of business rates. 

Business rates for qualifying retail, hospitality and leisure properties in England will be frozen in real terms in 2027/28 and 2028/29. Pubs, social clubs and most live music venues will get an extra 20% relief from 1 April 2027, taking their total relief to 35%. From April 2027, vape shops and adult gaming centres will lose access to these reliefs. 

Business rates are a tax on non-domestic property, such as shops and offices. The bill is based on the property's rateable value, which is an estimate of its yearly rent. Business rates in Scotland, Wales, and Northern Ireland are set separately. 

For example, a café owner in England whose premises has a rateable value of £15,000 will pay no business rates from April 2027, as long as they meet the other conditions for small business rate relief. 

The chancellor also announced these measures for businesses: 

• Machine games duty will rise from 20% to 25% on machines with stakes over £1 from April 2027. 

• From October 2027, online marketplaces will have to collect VAT on sales by UK businesses that sell more than £90,000 through them. Personal sales won't be affected. 

• Small Producer Relief in alcohol duty will become more generous, worth £10 million a year to over 2,000 small producers. 

• Businesses will save almost £800 million a year through cuts to regulation and extended tariff suspensions. New powers will let firms test new technologies safely and more quickly. 

• The British Business Bank's financial capacity will increase by £5 billion, including £1.4 billion for equity funds and £450 million for a new venture debt product. 

• The Trading Allowance will rise from £1,000 to £3,000 from 6 April 2027. 

• A Young Entrepreneurs Allowance will be piloted in England, helping successful applicants with living costs in the first year of their business. 

• A new scale-up programme will support women founders, and the British Business Bank has a pipeline of over £100 million of commitments to women-led funds. 

• Non-compete clauses will be reformed so they don't stop startups hiring or workers moving jobs, and visa salary requirements will better reflect labour markets across the UK. 

• Founders will get a new 10% Capital Gains Tax rate on up to £10 million of lifetime gains (see capital gains tax above).

AI

Today, the chancellor set out how Britain will lead on AI, saying it should be “secure, safe, and working for the British people”. He announced: 

• An extra £120 million for the AI Security Institute and £165 million for a new National AI Biosecurity Initiative. 

• £154 million to strengthen cyber defences and £40 million for a new National Agentic Security Unit to respond to rogue AI agents. 

• An extra £140 million for the Sovereign AI Unit to help UK AI companies grow. 

• A new Data Centre Covenant, setting out the tests strategic data centres are expected to meet, including their contribution to communities and the UK economy. 

• A Chancellor's AI Challenge Prize, backed by £15 million, to find AI solutions to public service challenges. The first competition will focus on the NHS, with a top award of up to £2.5 million. 

• The Union Learning Fund will be re-established in England with £15 million a year from 2027/28 to support workers' learning and training. 

Other announcements that could affect you 

Here's a summary of the other main measures: 

• Minimum wage: The government will raise the minimum wage by 3.9%, bringing the National Living Wage to £13.21 an hour and the 18-20 National Minimum Wage to £11.27. 

• Benefits: Carer's Allowance will be reformed so carers no longer lose their entire benefit for earning a penny over the weekly earnings limit. Instead, the benefit will taper down as earnings rise and will start during 2030/31. From April 2029, eligible self-employed fathers, partners and adopters in Great Britain will be able to get parental pay for the first time. 

• Fuel duty: Today the chancellor extended the 5p cut to fuel duty to July 2027. Before today's announcement, the government had already extended the 5p cut earlier this year. 

• Student loans: Interest rates on Plan 2 and Plan 3 student loans will be capped at 6% from 1 September 2026 to 31 August 2027. 

• Food bills: Tariffs will be suspended on more than 100 imported food products, from plant-based drinks to baked beans, until December 2028. The government expects this to cut consumer costs by £120 million to £185 million a year. Tariffs on kerosene heating oil will also be suspended until December 2028. 

Get expert financial advice 

The volume of announcements made in the Autumn Budget can feel overwhelming. Before making any decisions, it's worth taking time to understand how the changes apply to you. 

It’s also worth remembering that some Budget announcements still need to pass through Parliament, usually in a Finance Bill over the following months. Some details may change before they become law. 

A financial adviser can review your whole situation, including your income, pensions, savings, and plans for passing on wealth and give advice based on your circumstances. 

Unbiased can match you with a qualified financial adviser.