Legal briefing | 01 Sep 2026 |

Budget Tracker (2026)

Tax Measures Speculated to be Included in Autumn Budget 2026

The Chancellor of the Exchequer, Rt Hon John Healey MP, delivered his first Budget on Wednesday 28 October 2026.

The new Chancellor inherited all of the same economic challenges, and even more of the geopolitical instability, that his predecessor faced, but he took charge of HM Treasury alongside a wave of promises from the new Prime Minister to bring "new hope", give people and businesses "a little breathing space", devolve spending power to the regions, address the crisis in social care, materially increase defence spending … and "stick well within [Rachel Reeves'] fiscal rules"… and honour the Labour government's 2024 Manifesto pledges to "not increase National Insurance, the basic, higher, or additional rates of Income Tax, or VAT": still the three largest revenue-raising levers available to any government.

Healey was appointed Chancellor of the Exchequer on 20 July 2026. Budget Day, Wednesday 28 October 2026, marked his 101st day in post. Did he meet all the expectations, find something to please everyone, and still balance the books?

Data from the Office for Budget Responsibility (March 2026), HM Treasury (October 2026), the Office for National Statistics (October 2026) illustrate the scale of his task:

Gross Domestic Product (GDP) growth (forecast average):
- 1.4% in 2026; and
- Falling back to 1.2% in 2027
Consumer Prices Index (CPI) inflation (forecast average):
- 3.6% in 2026; and
- Falling back to 2.5% in 2027
Public Sector Net Borrowing (total public spending in excess of total government receipts):
- Forecast to be £115.5bn (3.6% of GDP) in 2026/27 (down from £134.2bn (4.4% of GDP) in 2025/26).
- Was £97.8bn (3.6% of GDP) in the six months of the financial year to September 2026 (£6.0bn above the OBR forecast).
Public Sector Net Debt (total amount that the government owes):
- £3,005.0bn (94.0% of GDP) at the end of September 2026).
- Rising from 93.3% of GDP in 2025/26, and
- Forecast to rise to 95.7% of GDP in 2027/28.
Net debt interest (based on the OBR Economic and fiscal outlook in March 2026):
- Forecast to be £108.2bn (3.5% of GDP) in 2026/27.
- Was £60.8bn in the six months of the financial year to September 2026.
- Forecast to rise to £112.9bn (3.6% of GDP) in 2027/28.

This page tracked the most prominent proposals that have been the subject of speculation, across the main business sectors and tax types, since the Rt Hon Andy Burnham MP became Prime Minister on 20 July 2026.

Of the total 58 speculated measures we have tracked, the table below outlines the 21 that made it into the Red Book:

Title	Topic	Tax Type	Description	Budget 2026
Reverse Cut to Cash ISA Allowance	Personal Taxes	Income & NIC	The government is retaining the annual cash Individual Savings Accounts (ISA) subscription limits at £20,000.	Budget 2026, para 6.248
Devolve Income Tax	Personal Taxes	Income & NIC	The government is publishing the Fiscal Devolution Roadmap, which sets out its plans to reform the way that regional government is funded. This includes … providing Mayors with a share of income tax from 2028-29.	Budget 2026, para 6.40
Devolve Business Rates	Business Taxes	Council Tax & Business Rates	The government is publishing the Fiscal Devolution Roadmap, which sets out its plans to reform the way that regional government is funded. This includes bringing Mayors into the Business Rates Retention system from 2027-28.	Budget 2026, para 6.40
Extend freeze on fuel duty	Environmental Taxes	VAT & Indirect	The government will extend the temporary 5p-per-litre fuel duty cut for a further six months to 1 July 2027. The government is also deferring the planned RPI inflation increase to 1 July 2027.	Budget 2026, para 6.211
Introduce Reinvestment CGT Relief for Entrepreneurs	Personal Taxes	Capital Gains & Wealth	Not a Reinvestment CGT Relief but the government will introduce a new Founders’ Relief, providing a 10% CGT rate on up to £10 million of lifetime gains for qualifying founders of high-growth, innovative companies from 6 April 2027. Following a technical consultation on the detailed design launched at Budget, the measure will be introduced through Finance Bill 2026-27.	Budget 2026, para 6.257
Introduce a Windfall Tax on Banks	Business Taxes	Business & Corporation	The government will temporarily increase the surcharge rate to 6% for 15 months, from 1 January 2027 to 31 March 2028, returning to 3% from 1 April 2028. This measure will be legislated for in Finance Bill 2026–27.	Budget 2026, para 6.252
Increase Machine Gaming Duty	Business Taxes	VAT & Indirect	The Government will increase the rate of MGD from 20% to 25% for machine games with stakes over £1 or prizes over £100 from 1 April 2027. The Government will also change the liability for MGD to machine suppliers for supplier-owned machines under profit sharing arrangements from 1 April 2028 and has launched a 12-week consultation on the implementation of this reform. The consultation will close on 20 January 2027.	Budget 2026, para 6.225/226
Extend Online Marketplace VAT liability	Business Taxes	VAT & Indirect	From October 2027, VAT OMPL rules will be extended to UK businesses. Online marketplaces will be responsible for collecting VAT on sales by UK VAT-registered businesses and any other UK business with a minimum annual sales threshold per platform of £90,000. The rules will not apply to non-business (i.e. personal) sales, second-hand goods, or business-to[1]business transactions.	Budget 2026, para 6.154
Extend HMRC's Tax Debt Enforcement Powers	Personal Taxes	Income & NIC	The government will introduce a new power enabling HMRC to recover lower value tax debts through regular instalments directly from the bank accounts of individuals and companies who can afford to pay but repeatedly fail to do so from July 2029. The government will work with stakeholders to develop a Code of Practice setting out the safeguards and operational framework for the policy before being introduced to legislation in a future Finance Bill. The government have also announced further investment in HMRC's debt management capacity and compliance staff.	Budget 2026, para 6.149/150/151
Expand CBAM to 'Refined Products' (Fuels)	Environmental Taxes	Environmental	The government intends to expand the scope of the CBAM to include refined products, subject to consultation on the feasibility and impacts of doing so.	Budget 2026, para 6.218
Reduce Small Business Rates	Business Taxes	Council Tax & Business Rates	The government is increasing the SBRR eligibility thresholds for qualifying RHL properties in England from 1 April 2027. The threshold for 100% relief will increase to a rateable value of £18,000, and the threshold for tapered relief will increase to a rateable value of £21,000. These thresholds will provide ongoing support to qualifying properties, with their level kept under review alongside the 2029 revaluation.	Budget 2026, para 6.190
Reduce Business Rates for Hospitality	Business Taxes	Council Tax & Business Rates	The government is increasing the relief for pubs, social clubs and all but the very largest live music venues in England by 20%, from 15% to 35% from 1 April 2027. The very largest live music venues (with a rateable value of £1m or above) will not receive this increased rate of relief. This will provide ongoing support to qualifying properties, with the level kept under review alongside the 2029 revaluation	Budget 2026, para 6.189
Introduce a local Overnight Visitor Levy	Business Taxes	VAT & Indirect	The government is publishing the Fiscal Devolution Roadmap, which sets out its plans to reform the way that regional government is funded. This includes … enabling strategic authorities to introduce visitor levies with local leaders able to set out plans for how revenues will be invested by March 2028.	Budget 2026, para 6.40
Reform the UK Distributions Framework	Business Taxes	Business & Corporation	The government will reform the tax treatment of distributions and related rules to ensure they are consistent, regardless of legal form, company residence or transaction structure. The reforms are designed to protect capital treatment for genuine changes in ownership, including families passing down their business, and in some cases make the relief more generous for demergers. The government will continue engagement with stakeholders and will publish draft legislation for technical consultation in 2027, with the changes taking effect from April 2028.	Budget 2026, para 6.181
Increase Income Tax Rates	Personal Taxes	Income & NIC	Property income: The government is increasing all the rates of income tax applied to property income by 2%. From 2027 to 2028, the property basic rate will be 24%, the property higher rate will be 44%, and the property additional rate will be 49%. These rates will apply across England, Wales and Northern Ireland. This will be legislated for in Finance Bill 2026-27 and take effect from 6 April 2027. Savings income: The government is increasing all the rates of income tax applied to savings income by 2%. The savings basic rate will be 24%, the savings higher rate will be 44%, and the savings additional rate will be 49%. These rates will apply across the UK. This will be legislated for in Finance Bill 2026-27 and take effect from 6 April 2027.	Budget 2026, para 6.246/247
Extend the Zero Rate of VAT for Domestic Electricity	Environmental Taxes	VAT & Indirect	The temporary 0% VAT rate for domestic electricity (six months from 1 October 2026) will be extended for a further three months, to 1 July 2027. This is expected to apply UK-wide from April 2027.	Budget 2026, para 6.210
Increase Air Passenger Duty (APD)	Environmental Taxes	Environmental	As announced at Budget 2025, the government will introduce legislation in Finance Bill 2026-27 to extend the scope of the higher rate of Air Passenger Duty (APD) to all private jets of 5.7 tonnes or more. This change will take effect from 1 April 2027.	OOTLAR, para 1.72
Increase the Personal Allowance for State Pensioners	Pensions	Income & NIC	The government will introduce the Pension Tax Allowance (PTA), ensuring that pensioners whose total income is up to the value of the full new State Pension do not have the administrative burden of paying small amounts of tax. For those with incomes just above the value of the full new State Pension, the allowance will be gradually withdrawn through a taper. The allowance will apply from 6 April 2027 until 5 April 2030 and will be uprated in line with the full new State Pension across this Parliament. It will be legislated for in Finance Bill 2026-27 and the government will consider arrangements beyond April 2030 in the usual way.	Budget 2026, para 6.182
Extend Capital Allowances to Predevelopment Costs	Business Taxes	Business & Corporation	Not so much extending but clarifying guidance on when predevelopment costs will qualify. The government is publishing a summary of responses to the call for evidence on predevelopment costs. Next steps set out include exploring potential changes to guidance to clarify the tax treatment of such costs; and considering wider challenges for some infrastructure investment under the capital allowances regime.	Budget 2026, para 6.178
Accelerate Payment of Income Tax under Self-Assessment	Personal Taxes	Income & NIC	The government will require Income Tax Self-Assessment taxpayers who make payments on account to make more regular in-year payments towards their final tax bill from April 2029.	Budget 2026, para 6.147
Treat LLCs as Tax-Transparent	Personal Taxes	Income & NIC	The government considers that the right approach is to pursue a credit-based relief mechanism. Following a review of the evidence and continued policy development, the government came to the view that the transparency proposal would require a significant amount of new technical architecture, which would be complex to navigate and integrate poorly with the wider tax system. The government will publish a further technical consultation shortly on the proposed credit relief mechanism, before legislating in a future Finance Bill.	UK resident individual members of LLCs and other reverse hybrids — Summary of responses