Weekly Market Update: 30th October 2026
By Georgia Holmes
UK market update covering financial and economic developments, including the Autumn Budget, bank taxation, mortgage market pressures and proposed FCA regulatory reforms.
The UK financial landscape has been dominated by Chancellor John Healey’s Autumn Budget, delivered on 28 October. The announcements included changes to bank taxation, savings and property income, alongside measures designed to ease household energy costs and support businesses.
Meanwhile, mortgage approvals have fallen to their lowest level since 2023, highlighting the pressure that higher borrowing costs are placing on households. The FCA has also set out proposals to simplify financial services regulation, potentially reducing the administrative burden on regulated firms.
Here are the key developments from this week and what they could mean for households, investors and businesses.
Autumn Budget 2026: Key announcements and what they mean
The Chancellor’s first Autumn Budget focused on easing pressure on households and businesses while maintaining control over public finances. Against a backdrop of higher energy costs, inflation and rising government borrowing costs, the Government presented a package of targeted support alongside changes to taxation.
Some of the main announcements included:
Savings and property income tax: Income tax rates on savings and property income will increase by two percentage points from April 2027, taking the basic rate to 24%, higher rate to 44% and additional rate to 49%.
Cash ISAs: The Government reversed its planned reduction to the annual Cash ISA allowance, retaining the £20,000 limit.
Bank taxation: The bank corporation tax surcharge will temporarily increase from 3% to 6% for 15 months from January 2027.
Energy support: Eligible households in England will receive a £100 payment from January 2027, while the temporary VAT reduction on domestic electricity will be extended to July 2027.
Fuel duty: The 5p fuel duty cut and freeze will continue until July 2027.
Business rates: Additional relief will be provided to eligible retail, hospitality and leisure businesses, with the Government also increasing support for smaller businesses.
Online marketplaces: Online marketplaces will become responsible for collecting VAT owed by retailers selling through their platforms from October 2027.
The Budget also included additional investment in housing, infrastructure, artificial intelligence and national security.
For individuals, the changes to savings and property income taxation are particularly relevant, especially for landlords and those holding savings outside tax-efficient accounts. The retention of the Cash ISA allowance provides some reassurance for savers, while the energy measures should offer some relief to eligible households.
The overall impact will depend on individual circumstances, and many of the tax changes will not take effect until 2027.
Financial services reaction to the Autumn Budget
The financial services industry has responded to the Budget with a mixture of relief and caution. In the weeks leading up to the announcement, banks had been concerned about the possibility of a much larger increase in taxation. The final decision to increase the bank surcharge by three percentage points, rather than introduce a more substantial rise, was therefore received more positively by parts of the sector.
In its review, Financial services reacts to the Budget: A stay-the-course smorgasbord, Finextra describes the Chancellor's approach as relatively cautious, with an emphasis on stability rather than…