The Chancellor, John Healey, will deliver his first Autumn Budget on Wednesday 28 October 2026. It’s also the first Budget since Andy Burnham became Prime Minister, so there’s a lot of interest in what the new government will do with tax.
The Chancellor has said the Budget will stick to the government’s borrowing rules, but money is tight. That usually means some tax rises, along with help in the areas the government thinks will get the economy growing.
There’s already plenty of guesswork in the press, so we asked our team what they actually expect to see (and what they’d like to see), based on the conversations we’re having with business owners, employers and individuals every day.
Autumn Budget 2026 at a Glance
- Date: Wednesday 28 October 2026, usually starting at around 12:30pm after Prime Minister’s Questions.
- Chancellor: John Healey, delivering his first Budget.
- Ruled out: no increase to the rates of income tax, employee NI or VAT. (Labour committed to not increasing taxes for ‘workers’. Unfortunately, it seems business owners and landlords are not considered to fall into this category.)
- Our predictions: VAT threshold changes rather than a VAT rise, an Employers NI cut for under 25s, a bigger Employment Allowance for small businesses, more changes to business rates and working from home tax relief back on the table.
When is the Autumn Budget 2026?
The Autumn Budget 2026 is on Wednesday 28 October 2026. The Chancellor usually starts speaking at around 12:30pm, straight after Prime Minister’s Questions, and the speech normally lasts about an hour. The Office for Budget Responsibility (OBR) also publishes its latest forecasts for the economy on the same day.
It’s worth remembering that a lot of the important detail isn’t in the speech itself. It’s in the documents HMRC and the Treasury publish straight afterwards, which explain when changes start and who they affect. We’ll be going through these live on the day and sharing what it all means on our Budget Hub.
Who is Delivering the Autumn Budget 2026?
John Healey, who became Chancellor on 20 July 2026 after Andy Burnham took over as Prime Minister. He was previously Defence Secretary and worked at the Treasury as a junior minister between 2002 and 2007. This will be his first Budget.
What’s Expected in the Autumn Budget 2026?
Most experts expect some tax rises, but not to the rates of income tax, employee NI or VAT. The Prime Minister has said the government will stick to its manifesto promise not to raise these, so any extra money is likely to come from elsewhere, for example by freezing tax thresholds, changing allowances and reliefs or increasing business taxes.
The government doesn’t have much room to manoeuvre. Higher borrowing costs, rising energy prices linked to the conflict in the Middle East and more spending on defence have all eaten into the spare money the Chancellor was expecting to have. Some estimates put it as low as £5 billion, others nearer £10 billion.
The new government has also said it wants to move money and decision making out of Westminster and into the regions, and ease the pressure on household budgets. Paying for all of that without borrowing more is the big challenge.
In short, with the big three taxes off the table, we expect the changes to be in the detail. And that’s often where the biggest impact on your tax bill is.
Our Autumn Budget 2026 Predictions
1. VAT Stays at 20%, But the Threshold Could Change
We’re hoping the rumours of a VAT rise are wrong. The Prime Minister has said VAT won’t go up and we hope that holds, because a higher rate would be disastrous for hospitality, leisure and retail businesses that are already struggling with higher staff costs and customers watching what they spend.
If the Chancellor does need to raise more from VAT, we’d rather see the registration threshold drop to around £30K than see the rate go up. The threshold is currently £90K, which is high compared with a lot of other countries, and we know plenty of businesses keep their turnover just under it to avoid registering.
If the threshold did drop to £30K, a lot of sole traders and small businesses would need to register for VAT, either add it to their prices or absorb the cost, and keep digital records under Making Tax Digital.
If your turnover is between £30K and £90K, it’s worth understanding now how registering would affect your prices and cash flow, and whether a scheme like the Flat Rate Scheme could help. Our VAT team can work through the numbers with you.
2. A Cut to Employers NI for Younger Workers
We’d like to see a cut in Employers NI for younger employees to help bring youth unemployment down.
At the moment, employers pay 15% NI on earnings over £5,000 a year. You don’t pay any Employers NI for staff under 21 or apprentices under 25 (on earnings up to £50,270), but as soon as a non-apprentice turns 21 the full 15% kicks in.
More than one million 16 to 24 year olds are currently not in education, employment or training. In July, MPs on the Work and Pensions Committee recommended extending the 0% rate to everyone under 25, saying the current costs (NI and wages) are putting employers off hiring for entry level jobs, especially in retail and hospitality.
To put some numbers on it, a full-time employee aged 21 to 24 on the National Living Wage (£12.71 an hour) costs their employer around £2,970 a year in Employers NI. Extending the under 21 rule to under 25s would save you that for each one.
If you’re planning to take someone on, it’s worth checking whether an apprenticeship could already save you the NI. Our payroll team can also make sure every employee is on the right NI category.
3. A Bigger Employment Allowance for Small Businesses
We’d like to see the £10,500 Employment Allowance increased for small businesses, with it reduced or scrapped for larger businesses to pay for it.
The Employment Allowance lets eligible employers knock up to £10,500 a year off their Employers NI bill. Since April 2025, businesses of any size can claim it (it used to be limited to employers with an NI bill under £100,000).
Small businesses have felt the rise in Employers NI, the lower threshold and higher wages far more than big ones. A bigger allowance would be one of the simplest ways to help them keep their staff and take on new people.
As a rough guide, £10,500 covers the Employers NI on three or four full-time staff aged 21 or over on the National Living Wage.
Make sure you’re actually claiming it. It isn’t automatic, so you’ll need to claim it through your payroll software each tax year. If the only employee paid above the threshold is a director, the company can’t claim. There are also restrictions for businesses who sell to the public sector.
4. More Changes to Business Rates
Our view is that business rates should be scrapped altogether and replaced with a system based on profit rather than property. Realistically, we don’t expect that on 28 October, but we do expect more tweaks.
Business rates are based on the value of the building you trade from, not how much money you make. That means a struggling shop on the high street can end up with a big bill, while an online business working out of a warehouse pays a lot less in comparison. The system is also complicated and expensive to run, with revaluations, appeals, lots of different reliefs and now five different multipliers.
Business rates already changed in April 2026. Retail, hospitality and leisure properties now pay lower rates, while properties with a rateable value of £500,000 or more pay a higher rate of 50.8p in the pound. Pubs, social clubs and live music venues in England will also get a further 20% off from April 2027. These changes are welcome, but they add more complexity rather than fixing the problem.
Getting rid of business rates completely is unlikely any time soon. They bring in a lot of money for the government, and one of the obvious ways to replace it (putting up Corporation Tax) is off the table, as the main rate has been capped at 25% for this Parliament. What’s more likely is further changes to reliefs and rates, and possibly local councils getting more say over how business rates work in their area.
In the meantime, check your 2026 rateable value is correct, that you’re on the right multiplier and that you’re getting all the reliefs you’re entitled to. Mistakes are more common than you’d think.
5. Will Working From Home Tax Relief Come Back?
We wouldn’t be surprised if the Budget looked again at tax relief for working from home.
From 6 April 2026, employees can no longer claim tax relief from HMRC for the extra household costs of working from home if their employer doesn’t pay them for it. The flat rate was £6 a week (£312 a year), worth around £62 a year to a basic rate taxpayer and £124 to a higher rate taxpayer.
The government scrapped it because more than half of the claims HMRC checked weren’t eligible. But it doesn’t sit well with the government’s push for more flexible working, and it doesn’t save much money either. The Treasury expects to save around £10 million in 2026/27, rising to around £30 million a year, so a tighter version for people who genuinely have to work from home would be cheap to bring back.
In the meantime, employers can still pay staff up to £6 a week towards working from home costs tax and NI free, so it’s worth asking your employer. Company directors can still claim home office costs through their company. And if you were eligible in previous years but never claimed, you may be able to backdate a claim for up to four years.
What’s Already Been Announced?
A few changes have already been confirmed, and some from previous Budgets are still on their way:
- VAT on electricity: VAT is being removed from household electricity bills from 1 October 2026.
- Pubs and venues: 20% off business rates for pubs, social clubs and live music venues in England from April 2027.
- Frozen thresholds: the Personal Allowance (£12,570) and the Employers NI threshold (£5,000) are frozen until April 2031, so more people pay more tax as wages go up.
- Cash ISAs: the Cash ISA limit is due to drop to £12,000 for savers under 65, as announced in the 2025 Budget.
- Student loans: the Plan 2 repayment threshold is frozen at £29,835 from April 2026 to April 2030.
- Making Tax Digital for Income Tax: now in place for sole traders and landlords with income over £50K, dropping to £30K from April 2027. Find out if you need to comply with Making Tax Digital.
Any of these could change on Budget day, so keep an eye on our Budget Hub.
What Should You Do Before the Budget?
Our advice is not to make any big decisions based on rumours. But the next few weeks are a good time to get organised, so you can act quickly once the details are confirmed. Some Budget changes start straight away, some from the next tax year and some years down the line.
Before 28 October:
- Business owners: review how you’re paying yourself this year (salary, dividends and pension contributions) and think about whether any big purchases, like equipment or vehicles, should happen before or after the Budget.
- Employers: check you’re claiming the Employment Allowance, make sure younger staff and apprentices are on the right NI category, and review your working from home policy.
- Businesses close to the VAT threshold: work out what registering would mean for your prices and admin.
- Retail, hospitality and leisure businesses: check your rateable value and that you’re getting every relief you’re entitled to.
- Individuals: make the most of this year’s allowances, like your ISA and pension, and speak to your accountant before selling assets or making gifts based on speculation.
- Everyone: book in a catch up with your accountant after the Budget to find out exactly how it affects you.
This blog is general information rather than personal advice, so please speak to us before making any decisions.
Autumn Budget 2026 FAQs
When is the Autumn Budget 2026?
The Autumn Budget 2026 is on Wednesday 28 October 2026. Chancellor John Healey will deliver it in the House of Commons, and the Office for Budget Responsibility will publish its economic and fiscal forecasts on the same day.
What Time Does the Autumn Budget Start?
The Budget speech usually starts at around 12:30pm, straight after Prime Minister’s Questions, and typically lasts about an hour. The full Budget documents are published online as soon as the Chancellor sits down.
What’s Expected in the Autumn Budget 2026?
Most experts expect some tax rises, but not to the rates of income tax, employee NI or VAT, which have been ruled out. Areas to watch include tax thresholds, investment and property taxes, business rates, Employers NI and support for regional growth and the cost of living.
Will VAT Go Up in the Autumn Budget 2026?
A rise in the main VAT rate is unlikely. The Prime Minister has said the government will keep its manifesto promise not to raise VAT. However, other changes to VAT, such as a change to the £90,000 registration threshold or new reduced rates, haven’t been ruled out.
Will Employers NI Change in the 2026 Budget?
Employers NI is currently 15% on earnings above £5,000. There’s growing pressure, including from a committee of MPs, to extend the existing 0% rate for under 21s to all employees under 25. We think a cut for younger workers is one of the more likely changes.
Is Working From Home Tax Relief Coming Back?
It was scrapped for employees from 6 April 2026 and there’s no confirmed plan to bring it back. We think it could be looked at again because it raised so little. In the meantime, employers can still pay up to £6 a week tax free towards working from home costs.
Who is Delivering the Autumn Budget 2026?
Chancellor of the Exchequer John Healey, who was appointed in July 2026. It’s his first Budget and the first under Prime Minister Andy Burnham.
When Do Budget Changes Come Into Effect?
It depends on the change. Some start immediately on Budget day, many start from the next tax year on 6 April 2027, and others are brought in over several years. The Budget documents confirm the start date for each one.
Get Ready for the Budget With 360
Whatever the Chancellor announces, the most important thing is what it means for you. Our team will be covering the announcements live on the day on our Budget Hub, YouTube and social channels.
For the first time this year, we are offering a personalised Autumn Budget Report Service to clients. This will include a detailed, personalised report including the cost implications for your business of any National Minimum Wage, Employers NI or tax increases, as well as an analysis of the impact to you personally and suggested actions to mitigate any increases. Please get in touch for more information on this service.
For a free, no obligation initial meeting (either in person or online), please contact us on help@360accountants.co.uk or 01482 427360, or make an enquiry online.
