Quick answer: The Autumn Budget 2026 was announced on 28 October 2026, delivered by Chancellor John Healey. Business rates relief threshold, tax-free trading allowance, and support for startups and founders are some of the headline changes. We’ve analysed what this means for small businesses and the self-employed.
Chancellor John Healey delivered the Autumn Budget on 28 October 2026 alongside economic forecasts from the Office for Budget Responsibility (OBR).
VAT, business rates, and the cost of hiring are key areas we’ve been watching for in the Budget this year. But what was announced that could affect your finances and how you do business?
What was in the Autumn Budget 2026?
Healey reaffirmed Labour’s manifesto pledge not to raise tax on working people. Instead, he promised a Budget that will bring “breathing space on the cost of living and cost of business.”
These are the headline changes we’ll see as part of the government’s 2026 Autumn Budget:
- tax-free trading allowance tripled to £3,000
- small business rate relief threshold increasing
- new founders allowance and support for startups
- measures to reduce energy bills
- national minimum wage and living wage increases
- fuel duty freeze
- increased power and funding to regional mayors and local authorities
- National Insurance increase
What does this mean for small business owners?
Read our in-depth article on what this means for small businesses, the self-employed, and employers – including interactive graphs and commentary finance and accountancy expert Fi Titus.
What is the Autumn Budget 2026?
The Autumn Budget is an annual statement to Parliament where the chancellor sets out the government’s plans for tax and public spending.
The most recent Budget took place on Wednesday 28 October 2026. Chancellor John Healey set out plans to bring “breathing space to households and small businesses.”
Healey said it’s a Budget that will bring “innovation and growth in every postcode” – and that it’ll give businesses and families “some of the stability they need to plan for the future.”
What was missing in the Autumn Budget for businesses?
The chancellor didn’t announce anything on VAT thresholds, which is one area we know businesses find challenging. And while the minimum wage increases are good news for people in work, this pushes up the cost of hiring for the smallest firms.
Fi Titus, Chartered Accountant, Co-founder of Coco Financial and Fineo shared what she’d do in her fantasy Budget if she was chancellor for a day:
What should small business owners do now?
There’s lots to digest after the Budget and it’s important not to make any snap decisions. But here’s a few things worth doing now:
- Check your electricity tariff – if you’re on a qualifying reduced-rate tariff, confirm with your supplier that the VAT cut to 0% is being applied from 1 October.
- Check your council tax band (if you live in England) – if your home is in council tax band A to D, then you’ll be eligible for the government’s “household energy payment” – a one-off payment of £100 to help with the cost of energy bills this winter.
- If you run a high street business – check if you’re one of the 70,000 new high street businesses that will no longer have to pay business rates, thanks to the new thresholds for small business rates relief.
- Check government funding for entrepreneurs – new funding is being made available for young people, women, and startups, so it’s worth seeing what you might be eligible for.
‘Give us the conditions to thrive’
Responding to the Autumn Budget, Julie Fisher, UK CEO at Simply Business, said: “Going into this Budget, the message from UK small business owners was clear – give us the conditions to thrive by urgently addressing business rates, the VAT threshold, and rising energy costs. Despite some green shoots of hope, it’s clear that more is needed.
“Increasing the business rates relief threshold for retail, hospitality and leisure businesses is undoubtedly a boost, meaning 70,000 more businesses will no longer pay business rates.
“And we can be equally encouraged by the Chancellor’s attempts to reduce the barriers facing new founders – increasing the trading allowance and the introduction of the young entrepreneurs allowance are both clear signs of a government seeking to harness the UK’s entrepreneurial potential.
“But for many small business owners, the Budget fell short – failing to land the step change many feel is needed to truly unlock growth. The 24% calling for an increase in the VAT threshold will be left frustrated, while a lack of tailored support for business’s energy bills is at odds with the 36% owners who cite this as one of their two fastest-rising costs.
“The Chancellor has today taken steps in the right direction – but they must be viewed as the start, not the end, of a plan designed to supercharge the UK’s small business community. Give small businesses the stability and confidence to plan, invest, and grow and we will all feel the benefits.”
‘Don’t make any knee-jerk business decision’
Fi Titus says: “There will be lots of headline-grabbing ‘hot takes’ after the announcement. In almost all cases, they’ll lack the deeper context and nuance needed to truly understand the policy and who exactly is affected.
“Block out the noise and don’t make any knee-jerk business decisions (especially not based on speculation). As the dust settles, make sure to understand what it means personally for you and your business. Small business owners are resilient, and we’ll be here to help you navigate it.”
More guides for small business owners
- Key types of business tax in the UK (2026-27 update)
- Quarterly tax reporting: practical ways to stay ahead of the new deadlines
- Mandatory e-invoicing starts in 2029: what you need to do first
- The hidden cost of running a small business (and tips to deal with it)
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