Autumn Budget 2026

The UK’s Autumn Budget 2026 was announced in Parliament on Wednesday 28 October 2026 by the Chancellor of the Exchequer, John Healey.

The Office for Budget Responsibility (OBR) also published its economic and fiscal forecast alongside the Budget.

The Autumn Budget 2026 announced changes affecting savings and property income, pensioners, ISAs, business asset disposal relief, business rates and minimum wage rates.

Pensions

The new State Pension rate will increase by 3.9% from April 2027, from £241.30 a week (£12,547.60 a year) to £250.70 a week (£13,036 a year).

Because the new rate exceeds the frozen £12,570 personal allowance, the Chancellor announced a new Pension Tax Allowance so that individuals relying solely on the state pension will not pay income tax on it during this Parliament.

From April 2030, the State Pension Triple Lock will be adjusted. The pension will continue to rise by at least inflation or 2.5%, with an additional link to earnings to maintain its value relative to average earnings over time. The government estimates the change will reduce State Pension spending by £15 billion a year by the end of the 2030s.

Tax

Tax rates on savings income will increase to 24% (basic rate), 44% (higher rate) and 49% (additional rate) from 6 April 2027 across the UK.

For landlords property income will also be subject to tax rates of 24%, 44% and 49% for the respective rates.

Savings & Investments

The annual Cash ISA allowance will remain at £20,000, and the Chancellor confirmed that the previously planned cut that would have lowered the Cash ISA limit to £12,000 for people under 65 has been cancelled.

The government plans to introduce a First Time Buyer ISA to replace the Lifetime ISA, focusing the new product on saving for a first home. Existing Lifetime ISA holders will be able to continue using their accounts under the existing rules.

The Budget also announced plans to consult on a new "starter ISA" to help first-time investors. Further details of the scheme have not yet been specified.

Businesses & Entrepreneurs

The Budget announced a reduction in the threshold for Business Asset Disposal Relief from £1 million to £500,000.

The Budget increases the rateable-value threshold for 100% Small Business Rate Relief from £12,000 to £18,000, meaning eligible businesses with properties valued at £18,000 or less will pay no business rates.

The Trading Allowance will triple from £1,000 to £3,000, allowing individuals to earn more income from casual trading or a small side venture before paying tax on that income.

The Chancellor announced a proposed founders’ relief, which would apply a 10% CGT rate to lifetime gains of up to £10m.

Plans were also announced for a young entrepreneurs allowance, which will cover a year of living costs for young founders while they turn their ideas into businesses, and a scale-up programme for female founders.

National Minimum Wage & National Living Wage

The National Minimum Wage and National Living Wage will increase by 3.9%.

The adult National Living Wage was £12.71 an hour before the announced increase. A 3.9% increase would take it to approximately £13.21 an hour. The rise happens from April 2027.

The next Budget from the UK government will be 2027’s Spring Statement (or Spring Forecast). While the exact date has not yet been officially announced by the Chancellor of the Exchequer, it typically takes place in mid-March.

The Spring Statement is designed as an interim economic update rather than a major tax-raising or policy-changing package. Our Spring Forecast page explains the changes announced in 2026.