Autumn Budget Statement 2026 Announcements at a Glance

The main measures and what they mean for your money, family and business

Chancellor John Healey has announced his first Autumn Budget, unveiling a £100 “household energy payment” for 20 million households in council tax bands A to D in England, with equivalent funding for Scotland, Wales and Northern Ireland.

The measures include a time-limited 3% surcharge on bank profits, tax increases on certain savings and rental income and plans to expand regional financial powers, with mayors receiving a share of income tax from 2028 onwards.

The Budget also targets energy costs, business support, pensions and wages and benefits. Inflation is forecast to return to 2% in 2028, with economic growth expected to slow next year and borrowing to fall as a share of GDP.

We have summarised the key announcements from the Autumn Budget at a glance, highlighting the main changes and their potential implications for households, workers and businesses across the UK.

Economy

•   Government borrowing is predicted to be higher than previously expected in every year of the latest forecast

•   Inflation is forecast to average 3.1% this year and 3.4% in 2027, above previous forecasts, before falling to the government’s 2% target in 2028

•   UK national debt is set to rise from 96% of GDP this year to 97% in 2028/29, then fall back to 96% in 2031

•   The OBR predicts the UK economy will grow by 1.2% this year, up from its previous estimate of 1.1%

•   Borrowing as a proportion of GDP is forecast to fall to 4.2% this year and then decline each year to reach 1.8% in 2030/31

•   Economic growth is expected to slow to 1% next year, down from the previous forecast of 1.6%, before recovering to 1.6% in 2028

Wages, Benefits and Pensions

•   Legal minimum wage to increase by 3.9% in April

•   Parental pay extended to self-employed fathers and to parents in same-sex couples

•   A new tax-free allowance for low-income pensioners will ensure that those with incomes up to the full new State Pension amount will not pay income tax

•   Unpaid carers will no longer lose their entire Carer’s Allowance if they earn more than £204 a week after tax, as a taper rate will replace the previous rule

•   The new flat-rate state pension will increase by £488 a year from April — equivalent to 3.9% — under the triple lock, while the old basic state pension will rise by £374.40

Energy and Cost of Living

•   Freeze on fuel duty extended again until July 2027

•   A green levy — the Gas Shipper Obligation to fund hydrogen projects — to be removed from energy bills and shifted to general taxation

•   A new scheme offering 25% off electricity bills for 10,000 firms will launch in April 2027, with payments backdated to cover this year’s energy costs

•   One-off £100 payment for 20 million households in council tax bands A to D in England to help with rising energy bills, with equivalent funding for Scotland, Wales and Northern Ireland

•   Import taxes to be removed on more than 100 food products, including gherkins, marmalade, kerosene and fertilisers

•   VAT cut on electricity bills extended from April to July 2027

•   Standing charges — fixed daily fees customers pay regardless of usage — to be removed from household gas bills in England, Scotland and Wales, with costs added to the unit rate

•   A 55p-per-mile tax-free mileage rate for those driving up to 10,000 miles for work has been made permanent, with the rate rising from 25p to 35p per mile for any distance beyond that

Housing

•   An extra £432m for a programme aimed at giving every rough sleeper in England a route off the streets by Christmas

•   An additional £1bn for social and affordable housing in England, bringing the total funding for the 10-year programme to more than £40bn

Defence

•   Details of how the government will meet its NATO commitment to spend 3.5% of GDP on defence by 2035 will be set out at next year's Spending Review, with a 2030 target of 3%

•   Defence Investment Plan to be fully funded by reprioritising government budgets, after Sir Keir Starmer committed only £10.3bn to the £15bn plan

•   Extra £10bn of economic and military support for Ukraine

Devolution and Regions

•   Regional bodies and mayors in England to receive greater powers over spending, starting with £285m next year for housing, transport and High Streets

•   A share of income tax receipts to be paid to mayors from 2028 onwards

•   Government to work with mayors to design a £1.5bn borrowing facility to enable investment in larger projects

•   All business rates to be retained locally by the end of the decade, with mayors retaining 20% of revenue from next year

Other Announcements

•   Fund to tackle misogyny in schools, at work and in communities to receive £15m

•   The amount people can contribute to tax-free Cash ISAs (Individual Savings Accounts) will remain at £20,000 a year, with plans to reduce the limit to £12,000 for under-65s scrapped

•   More than £600m of investment in artificial intelligence (AI) projects, including an additional £120m for the UK's AI Security Institute and £100m for a national AI Biosecurity Lab

Business

•   Requirements for online marketplaces such as Amazon, eBay and Temu to be strengthened to prevent sellers using their platforms from avoiding paying VAT

•   Taxes on gambling machines to rise from 20% to 25% for higher-stakes machines

•   The threshold at which High Street shops in England start paying business rates is to be increased from £12,000 to £18,000, meaning businesses would pay no rates on properties with a rateable value below this level

•   Surcharge banks pay on their profits will rise from 3% to 6% for 15 months, starting in January

•   Adult gaming centres and vape shops will not be eligible for business rates relief

This summary of the Autumn Budget Statement 2026 was produced on Wednesday, 28 October 2026 and is for your general information and use only. It is not intended to address your specific needs. You should not rely solely on this content, nor should it be considered or used as advice. Although efforts have been made to provide accurate and timely information, there can be no guarantee that it remains accurate as of the date received or will remain accurate in the future. Individuals or companies should seek appropriate professional advice after carefully examining their particular circumstances before acting on this information. We accept no responsibility for any loss resulting from acts or omissions related to this content. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts. Tax levels, bases and reliefs are subject to change and their value depends on an individual's personal circumstances.