At a glance: The Autumn Budget lands on 28 October 2026, delivered by Chancellor John Healey. Several measures are already confirmed, including a VAT cut on domestic electricity bills and a 20% business rates reduction for pubs and live music venues.
Income tax, VAT, and National Insurance rates aren’t expected to rise, though capital gains tax remains one to watch.
Budget day can feel like background noise if you’re busy running a business. But this year’s Autumn Budget matters more than most. A new Prime Minister in Andy Burnham and a new Chancellor in John Healey are taking the reins at a moment when energy costs are rising and high streets are under pressure.
New data from Simply Business reveals what small businesses owners are most concerned about. From a survey of 1,464 business owners, only 45% feel very or somewhat confident about their business prospects over the next twelve months – a drop from 54% earlier this year.
45%
feel very or somewhat confident about their business prospects ahead of the Autumn Budget
54%
felt very or somewhat confident about their business prospects ahead of the Spring Statement
When we surveyed small business owners ahead of this year’s Spring Statement, 65% said the frequency of policy changes impacts their long-term planning.*
That uncertainty is exactly why it pays to understand what’s coming, rather than scrolling past the headlines on 28 October.
This guide breaks down the Autumn Budget 2026 for anyone who doesn’t follow Westminster for fun. We’ll cover when it’s happening, which changes are already locked in, which words to listen out for, and what you can do before the chancellor stands up.
When is the Autumn Budget 2026?
The Autumn Budget takes place on Wednesday 28 October 2026. Chancellor John Healey will deliver a statement to Parliament setting out the government’s plans for tax and public spending.
The Budget should start around 12.30pm and typically lasts about an hour. If this coincides with your work day, and you can’t set aside the time to watch, we’ll be sharing the headlines live on our Instagram and publishing a roundup post after the Budget ends.
Make sure you’re following us on Instagram and signed up to our newsletter to see the updates.
If you’re worried about taxes going up…
Our most recent data reveals that 19% of small business owners believe tax and regulatory compliance has risen the most for their business this year – so this is definitely a topic to watch out for.
But good news: no increase to income tax, VAT, or National Insurance is currently expected. Prime Minister Andy Burnham has committed to honouring Labour’s 2024 manifesto pledge not to raise these three taxes for the rest of this Parliament.
That pledge matters more than it might seem. Keeping them frozen significantly limits how much room the government has to raise money elsewhere.
Burnham has acknowledged the country is in a “challenging position” and hasn’t ruled out other tax changes. Capital gains tax is one area worth watching – rates last changed in October 2024, rising to between 18% and 24% depending on your band.
What to listen for: If Healey mentions capital gains, dividends, or inheritance tax reliefs, listen up: as that’s likely where any new revenue-raising measures will appear.
If you’re concerned about your energy bills…
This one’s already confirmed and took effect before Budget day. From 1 October 2026, VAT on household electricity bills dropped from 5% to 0%.
It’s primarily a measure for households – saving the average home around £45 a year, according to the government. But our research revealed that 36% of small business owners consider energy bills the biggest rising cost for their business.
Small businesses, charities, and residential care homes that already qualify for the reduced 5% rate through the existing VAT certificate and declaration process will also move to 0%. If your business pays a standard non-domestic energy tariff, you won’t automatically benefit.
But this cut is funded for the 2026-27 financial year only. The government has said it will “keep looking” at energy support, so the October Budget could extend or build on this measure.
Next step: Check with your energy supplier whether your tariff qualifies for the reduced rate, and if it does, confirm the 0% VAT change has actually been applied from 1 October.
If you’re worried about business rates…
If you run a pub, social club, or live music venue in England, the government has already confirmed a 20% cut to business rates taking effect from April 2027.
That’s on top of the 15% relief already in place for 2026-27, announced in January 2026. The government estimates the new cut will benefit nearly 32,000 businesses, saving the typical pub around £1,100 in its first year.
There’s a catch, though. The 20% discount won’t apply to the very largest live music venues, and the government hasn’t yet confirmed exactly where that line sits.
Beyond pubs and venues, the government has promised to go further with small business rates relief reforms on Budget day – though the details aren’t yet clear. There’s been speculation that the threshold for small business rates relief could rise from £12,000 rateable value to £15,000. If that happens, it could bring even more high street businesses under the relief umbrella.
There’s no confirmed word on cuts for businesses in other industries yet, but that could change on the day.
What to listen for: The Budget should set out the threshold for “large” venues, any wider review of small business rates relief, and whether the rateable value threshold increases. Changes would apply to businesses in England only.
If you’re anxious about your pension and inheritance tax…
This change is already written into law, but plenty of business owners still haven’t heard about it. From 6 April 2027, most unused pension funds and pension death benefits will be included within a person’s estate for inheritance tax purposes.
Right now, unused pension savings in discretionary pension schemes can pass to beneficiaries after death with no inheritance tax charge. That’s increasingly been used as a tax-planning tool, which is exactly what the government wants to close down.
Under the new rules, personal representatives, the people responsible for managing a deceased person’s estate, will be liable for reporting and paying any inheritance tax due on unused pension funds.
The government estimates around 10,500 estates will face an inheritance tax liability they previously wouldn’t have, with a further 38,500 estates paying more than before. On average, the inheritance tax liability is expected to rise by around £34,000 once pension assets are included.
What to listen for: Burnham has reportedly shown some willingness to look again at inheritance tax reliefs, so the Budget could revise how this change is implemented, even though the underlying legislation is already fixed.
If Making Tax Digital is on your mind…
The roll-out of Making Tax Digital (MTD) for income tax Self Assessment began in April 2026 – but only affected sole traders and landlords earning above £50,000. But starting in April 2027, this income threshold lowers to £30,000 – bringing more businesses into HMRC’s mandatory digital record-keeping system.
With these changes on the horizon, there’s speculation that the chancellor could use the Budget to confirm implementation timelines or refine the penalty points system tied to MTD compliance.
What to listen for: If you’re frequently earning more than £30,000 a year, you’ll likely need to switch to MTD next April. If you hear the chancellor begin to speak about this, listen up, as this could help you avoid potential penalties and unnecessary costs.
Keep an eye on the bigger picture
The Autumn Budget 2026 arrives at a genuinely uncertain moment for the UK economy, and for the small businesses navigating it. Some relief is already locked in, particularly around energy bills and business rates for hospitality and live music venues. Other changes, like the pension inheritance tax rules, are confirmed but could still see tweaks to their implementation.
The safest approach is to separate what’s already decided from what’s still speculation. Act on the confirmed measures now, and keep watching for detail on the rest.
Check back after 28 October for a full breakdown of what the Chancellor actually announces, and how it affects your business specifically.
Frequently asked questions
When is the Autumn Budget 2026, and who’s delivering it?
The Autumn Budget takes place on Wednesday 28 October 2026. Chancellor John Healey will deliver the statement to Parliament.
Will my business pay more income tax, VAT, or National Insurance after the Budget?
No rise to these three taxes is currently expected. Prime Minister Andy Burnham has committed to Labour’s 2024 manifesto pledge not to raise them for the rest of this Parliament.
Does the electricity VAT cut apply to all businesses?
No. Only small businesses, charities, and residential care homes already on a qualifying reduced-rate tariff will move to the new 0% rate from 1 October 2026. Standard non-domestic tariffs aren’t automatically included.
Who benefits from the business rates cut, and when does it start?
Pubs, social clubs, and live music venues in England get a 20% business rates cut from April 2027, on top of existing 15% relief. The very largest live music venues are excluded, though the exact threshold hasn’t been confirmed yet.
Could the pension inheritance tax changes still be altered before 2027?
The rules are already legislated, but Burnham has reportedly shown some openness to revisiting inheritance tax reliefs more broadly. It’s worth watching the Budget for any changes to how the policy is implemented, even if the core rule stays in place.
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Methodology
Findings from an online survey of 1,464 UK small business owners conducted between 30 September and 7 October 2026.