[UK] Overview of autumn budget 2026

On October 28, the UK Chancellor John Healey delivered his first budget. The chancellor told Parliament that his economic plan is intended to "steer us through the global economic storms" of today and "chart a new course for Britain in the years ahead". 

Mr Healey stated that he is "making sure that people pay the tax they owe, when they owe it, and closing loopholes in our tax system".

During his discussion of spending reviews and the need to prioritise through a "digital overhaul of government", the chancellor cited an investment in AI for "civil service transformation, to support saving a further £600m from back-office budgets".

The chancellor concluded his closing remarks by saying that this budget will give “breathing space now, fresh hope for the future”.

The budget’s key measures impacting businesses, payroll and HR reportedly include:

• The National Living Wage rising by 3.9 per cent to £13.21 an hour from April 2027 

• A 3.9 per cent pay rise for workers aged 18-20, matching the increase for those aged 21 years and over

• Paternity leave pay eligibility for self-employed fathers

• New funding from HMRC to improve compliance along with stronger powers to collect overdue tax from those who “can clearly afford to pay but ignore repeated contact”.

• Re-establishing the Better Regulation Executive to “cut outdated regulations and admin burdens on business and on workers”

• A further £500m government investment in AI safety and security

• A new trading allowance, raising the amount people can earn from a new venture tax-free from £1,000 to £3,000

• A young entrepreneurs allowance, covering a year of living costs for young founders "while they turn their ideas into businesses".

• A scale-up programme for female founders, and a doubling of the British Business Bank’s commitments to women-led businesses in funds to £200m

• A new “founders’ relief”: a 10 per cent rate on lifetime gains, up to £10m for the founders of businesses

• Cutting business rates to zero for 70,000 businesses by raising the threshold for those who have to pay it from premises with a rateable value of £12,000 to £18,000

• Confirmation of earlier reporting that taxes on banks will rise; there will be an extra 3 per cent on the bank surcharge for 15 months from January

Sources: BBC News and The Guardian

On October 28, the UK Chancellor John Healey delivered his first budget. The chancellor told Parliament that his economic plan is intended to "steer us through the global economic storms" of today and "chart a new course for Britain in the years ahead". 

Mr Healey stated that he is "making sure that people pay the tax they owe, when they owe it, and closing loopholes in our tax system".

During his discussion of spending reviews and the need to prioritise through a "digital overhaul of government", the chancellor cited an investment in AI for "civil service transformation, to support saving a further £600m from back-office budgets".

The chancellor concluded his closing remarks by saying that this budget will give “breathing space now, fresh hope for the future”.

The budget’s key measures impacting businesses, payroll and HR reportedly include:

• The National Living Wage rising by 3.9 per cent to £13.21 an hour from April 2027 

• A 3.9 per cent pay rise for workers aged 18-20, matching the increase for those aged 21 years and over

• Paternity leave pay eligibility for self-employed fathers

• New funding from HMRC to improve compliance along with stronger powers to collect overdue tax from those who “can clearly afford to pay but ignore repeated contact”.

• Re-establishing the Better Regulation Executive to “cut outdated regulations and admin burdens on business and on workers”

• A further £500m government investment in AI safety and security

• A new trading allowance, raising the amount people can earn from a new venture tax-free from £1,000 to £3,000

• A young entrepreneurs allowance, covering a year of living costs for young founders "while they turn their ideas into businesses".

• A scale-up programme for female founders, and a doubling of the British Business Bank’s commitments to women-led businesses in funds to £200m

• A new “founders’ relief”: a 10 per cent rate on lifetime gains, up to £10m for the founders of businesses

• Cutting business rates to zero for 70,000 businesses by raising the threshold for those who have to pay it from premises with a rateable value of £12,000 to £18,000

• Confirmation of earlier reporting that taxes on banks will rise; there will be an extra 3 per cent on the bank surcharge for 15 months from January

Sources: BBC News and The Guardian