Autumn Budget 2026: What you need to know

The economy and fiscal forecasts 

• The Office for Budget Responsibility (OBR) forecasts UK economic growth of 1.2% in 2026, 1.0% in 2027, 1.6% in 2028, 1.8% in 2029, 1.7% in 2030, and 1.6% in 2031.
• National debt is projected to fall from 83.2% of GDP to 81.7% of GDP by 2031/32.
• Government borrowing is forecast to decrease from 4.4% of GDP this year to 1.8% of GDP by 2031/32.
• The budget deficit is expected to be eliminated within three years.

Taxes and duties

• There will be no increase in income or dividend tax.
• The existing 5p cut in fuel duty has been extended, with fuel duty frozen until 1 July 2027.
• The National Living Wage and National Minimum Wage will increase by 3.9%. From April 2027, the National Minimum Wage for workers aged 21 and over will increase to £13.20 per hour, up from £12.71. Rates for 18- to 20-year-olds will rise from £10.85 to £11.27.
• The allowance for using a private vehicle for work will remain at 55p per mile for the first 10,000 miles while the rate for additional miles will increase from 25p to 35p.
• The Bank Corporation Tax Surcharge will temporarily increase from 3% to 6% for 15 months, from 1 January 2027 to 31 March 2028. The additional revenue will help fund household energy support.
• The government is strengthening the VAT obligations placed on online marketplaces, requiring them to collect VAT on behalf of sellers to reduce VAT avoidance through online sales.
• The Small Business Rate Relief threshold will increase from £12,000 to £18,000 for retail, hospitality and leisure businesses.
• Pubs, music venues and social clubs will receive an additional 20% reduction in business rates, while rates for other retail, hospitality and leisure properties will be frozen for two years.
• Adult gaming centres and vape shops will be excluded from the business rates relief measures.
• Machine Games Duty on higher-stakes gaming machines will increase from 20% to 25%.

Household and cost-of living measures

• Households in England in Council Tax bands A to D will receive a £100 Household Energy Payment directly into their bank account from January 2027.
• The temporary VAT cut on electricity will be extended to July 2027.
• Gas standing charges will be abolished from 2027, or as soon as practically possible afterwards.
• Tariffs will temporarily be reduced on more than 100 food and drink products in an effort to reduce household shopping costs.
• Parental pay will be expanded, including extending support to self-employed fathers and partners for the first time
• The annual trading allowance will increase from £1,000 to £3,000 per tax year.
• The State Pension will increase by 3.9% from April 2027, increasing the full New State Pension to approximately £13,036 per annum
• A new Pension Tax Allowance will ensure that pensioners whose income is at or below the full new State Pension are not brought into income tax solely because of increases to the State Pension during this Parliament.
• The annual Cash ISA subscription limit which was to be reduced in 2027/28 from £20,000 to £12,000 has been reversed.

Public sectors and government spending

• Defence spending is targeted to increase to 3% of GDP by 2030 and 3.5% of GDP by 2035
• Regional mayors will
• retain 20% of business rates from 2027, rising to 100% by the end of the decade
• From 2028 receive a share of Income Tax revenues generated within their regions.
• be granted powers to introduce a tourist tax on overnight accommodation.

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