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Autumn budget 2026

On 28 October 2026, Chancellor John Healey delivered the Autumn budget, accompanied by a forecast from the Office for Budget Responsibility (OBR). Read ICAEW's reaction and analysis.

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Chancellor John Healey prepares to deliver the Autumn Budget on 28 October 2026. Picture by Kirsty O'Connor / No 10 Downing Street
Big Ben and the Houses of Parliament in London, UK. Photo credit S Borisov
The Budget 2026 cover, photographed in the No 11 office in Downing Street. Picture by Kirsty O'Connor / Treasury
Budget analysis

Chancellor delivers 'safe hands' budget

With little room for manoeuvre due to global supply challenges and low growth, the Chancellor focused on keeping all stakeholders – especially the markets – calm.
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Tax

Budget: nine key VAT changes announced

The budget included a range of VAT measures affecting businesses, from e-invoicing and online marketplaces to social housing and electric vehicle charging.
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Tax announcements

Measures affecting businesses

Key announcements include changes in capital allowance rates, a better process for claiming R&D tax relief and confirmation there will not be new reporting requirements for close companies.
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Budget analysis and reaction

Budget analysis: chancellor delivers ‘safe hands’ budget
  • Article
  • 28 Oct 2026
With little room for manoeuvre due to global supply challenges and low growth, the Chancellor focused on keeping all stakeholders – especially the markets – calm.
Budget: tax rates on property and savings income increased
  • Article
  • 28 Oct 2026
The government announced several changes to income tax at the budget 2026, including a further increase in the rates of tax on savings and property income, effective from April 2027.
Budget: nine key VAT changes announced
  • Article
  • 28 Oct 2026
The budget included a range of VAT measures affecting businesses, from e-invoicing and online marketplaces to social housing and electric vehicle charging.
Budget: business rates relief and fiscal devolution
  • Article
  • 28 Oct 2026
Alongside a 20% reduction in business rates liabilities in England for pubs, music venues and social clubs, more generous reliefs have been announced that will bring a further 70,000 business out of business rates from April 2027.
Budget: measures affecting businesses
  • Article
  • 28 Oct 2026
Key announcements include changes in the rates of capital allowances, improvements to the process for claiming research and development tax relief and confirmation that the government will not proceed with new reporting requirements for close companies.
Budget: MTD penalty soft landing and exclusions
  • Article
  • 28 Oct 2026
The government has confirmed that taxpayers who are due to join Making Tax Digital (MTD) for income tax from April 2027 will not be given penalty points for late submission of quarterly updates for 2027/28.
Budget: changes for employers and employees
  • Article
  • 28 Oct 2026
Employment tax announcements at budget 2026 included changes to the approved mileage allowance payments, increases to the national living and minimum wages and a reform of the benchmark scale and overseas scale rate payments.
Budget: government confirms measures to tackle tax debt
  • Article
  • 28 Oct 2026
From April 2029, income tax self assessment (ITSA) taxpayers will be required to make automated in-year tax payments (such as through direct debit), with eligible taxpayers being able to opt-in to payments through pay as you earn (PAYE).
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Autumn budget webinar

Join ICAEW's Tax Faculty on 2 November 2026 for a webinar offering commentary and insights on the Chancellor's key Autumn budget announcements relating to tax.

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Tax

Pre-budget analysis

Chancellor pledges to save UK SMEs £800m a year in admin costs
  • Article
  • 23 Oct 2026
The UK government has announced plans to further streamline small business reporting requirements and extend suspensions to import tariffs, following recommendations from the Small Business Regulatory Taskforce.
Suren Thiru on the economic backdrop to the budget
  • Article
  • 29 Sep 2026
The UK economy is creating a headache for the Chancellor and rate-setters amid rising inflation and continued uncertainty. ICAEW’s Chief Economist, Suren Thiru, discusses what you need to know.
ICAEW urges ‘breathing space’ for business ahead of Autumn budget
  • Article
  • 17 Sep 2026
In its budget submission to the UK Chancellor of the Exchequer, ICAEW has asked for greater clarity and certainty for businesses – and no more increases to employment tax.
Healey's budget options narrow
  • Podcast
  • 10 Sep 2026
We discuss the Chancellor of the Exchequer's goals for the budget and the options available to encourage growth, balance tax and spend, and calm the markets.
Chancellor hints at budget measures for growth
  • Article
  • 07 Sep 2026
While not revealing tax increases or spending decisions, the Chancellor has emphasised fiscal responsibility and measures to encourage investment.
Suren Thiru on why the PM’s economic honeymoon may not last
  • Article
  • 27 Aug 2026
The UK’s economy continues to hold up but rising inflation and a weakening labour market means this resilience is unlikely to last. In his August economic update, ICAEW’s Chief Economist discusses the implications.

Tax insights

Budget: business rates relief and fiscal devolution
  • Article
  • 28 Oct 2026
Alongside a 20% reduction in business rates liabilities in England for pubs, music venues and social clubs, more generous reliefs have been announced that will bring a further 70,000 business out of business rates from April 2027.
Budget: CGT changes include a new relief for founders
  • Article
  • 28 Oct 2026
There was mixed news for entrepreneurs in the budget, with the announcement of a new capital gains tax relief (CGT) for founders of innovative companies and a cut in the lifetime limit for business asset disposal relief (BADR).
Budget: changes for employers and employees
  • Article
  • 28 Oct 2026
Employment tax announcements at budget 2026 included changes to the approved mileage allowance payments, increases to the national living and minimum wages and a reform of the benchmark scale and overseas scale rate payments.
Budget: government confirms measures to tackle tax debt
  • Article
  • 28 Oct 2026
From April 2029, income tax self assessment (ITSA) taxpayers will be required to make automated in-year tax payments (such as through direct debit), with eligible taxpayers being able to opt-in to payments through pay as you earn (PAYE).
Budget: key changes to indirect taxes
  • Article
  • 28 Oct 2026
Budget 2026 includes changes to environmental taxes, excise duties and other indirect taxes. ICAEW highlights some of the key measures businesses and advisers should be aware of.
Budget: MTD penalty soft landing and exclusions
  • Article
  • 28 Oct 2026
The government has confirmed that taxpayers who are due to join Making Tax Digital (MTD) for income tax from April 2027 will not be given penalty points for late submission of quarterly updates for 2027/28.
Budget: personal allowance increased for low-income pensioners
  • Article
  • 28 Oct 2026
For 2027/28 onwards, individuals who are above the state pension age may receive the pension tax allowance in addition to their personal allowance, increasing the amount of income they can receive without having to pay income tax.
Budget: tax rates on property and savings income increased
  • Article
  • 28 Oct 2026
The government announced several changes to income tax at the budget 2026, including a further increase in the rates of tax on savings and property income, effective from April 2027.

Public finance insights

Public sector net debt hits £3tn ahead of budget
  • Article
  • 21 Oct 2026
Rising inflation and budget overruns provide a difficult backdrop for John Healey as he prepares for his first fiscal event. The Chancellor is under pressure to provide more support for rising energy bills, but the challenges to balance spending are mounting.
Budget overrun widens as public finances disappoint
  • Article
  • 22 Sep 2026
The triple whammy of geopolitical uncertainty, persistent inflation and rising gilt yields are squeezing the public purse as the Chancellor prepares for his first budget.
UK net debt in touching distance of £3.0tn
  • Article
  • 21 Aug 2026
Latest data confirms that the UK’s public finances remain weak, despite taxpayers facing the highest tax burden since the 1960s. The Chancellor faces significant challenges if he is to increase public spending, says ICAEW.

Letters to the government

ICAEW Letter to the Chancellor Autumn Budget 2026
  • Representation
  • PDF (132kb)
A letter from ICAEW Chief Executive Alan Vallance to the Chancellor ahead of the Autumn Budget on 28 October 2026.
ICAEW REP 075/26 Autumn Budget 2026: Give business breathing space to deliver growth
  • Representation
  • PDF (393kb)
A representation dated 9 September 2026 to the UK government ahead of the Autumn budget on 28 October 2026.

How to build a better tax system

The UK tax system is failing. ICAEW has identified five pillars critical to creating a system fit for the future and wants members views on solutions.
Read more Tell us your view
Graphical illustration of the five institutional pillars ICAEW has identified as being crucial to reforming UK tax system: policymakers, administration, digital infrastructure, tax professional and judiciary.

Charts

Chart of the week: debt on the rise
  • Article
  • 22 Oct 2026
Our chart this week looks at how the national debt has increased from £325bn a quarter of a century ago to just over £3tn on 30 September 2026.
Chart of the week: deficit blues
  • Article
  • 15 Oct 2026
Our chart this week looks at how the five-year fiscal forecasts have consistently proved too optimistic in recent years, something to bear in mind as the budget approaches.
Chart of the week: disposable income
  • Article
  • 08 Oct 2026
Our chart this week looks at how income is distributed across UK households with a median equivalised household disposable income of £3,265 per month and an equivalised average of £3,800 per month.
Chart of the week: borrowing maturity
  • Article
  • 01 Oct 2026
Our chart this week shows how the government has shortened the average period over which it borrows to seven years in recent years as yields on 30-year gilts hit 6.0%.
Chart of the week: OBR long-term fiscal forecast
  • Article
  • 10 Sep 2026
Our chart this week shows how alternative scenarios go off the chart in the OBR’s latest long-term fiscal projections.
Chart of the week: long-term interest rates
  • Article
  • 03 Sep 2026
Our chart this week highlights how long-term borrowing costs have changed over the past year in Japan, Germany, France, the US and the UK.

Business Confidence Monitor

ICAEW Business Confidence Monitor
  • Hub page
Quarterly reports on the economy which provide useful insight for finance professionals and their clients.
Confidence remains low as Iran war rages on
  • Article
Renewed US-Iran hostilities have put an end to any recovery in business confidence, resulting in the most prolonged period of low confidence in the UK since the financial crisis.

Further resources

Resources
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Economy

Expert analysis on the latest national and international economic issues and trends, and interviews with prominent voices across the finance industry alongside data on the state of economy.

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Resources
Analysis from ICAEW's experts on the Autumn Budget 2021 and the comprehensive spending review published on 27 October 2021.
Economy explainers

ICAEW experts offer simple guides to help understand the technical, economic jargon that is discussed when talking about public finances and the economy.

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Policy and public affairs
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Developing policy in the public interest

See the latest work from ICAEW's Public Affairs and Policy Teams to influence policy in the public interest. Read news and insights relating to our political engagement work at a regional, national and international level.

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