The Autumn Budget 2026 in detail

Chancellor John Healey delivered his first Autumn Budget on Wednesday 28 October, setting out the Government’s latest plans for taxation, public spending and economic growth against a backdrop of global uncertainty and continued pressure on household finances.

With borrowing costs rising and inflation remaining stubbornly high, the Chancellor faced the challenge of supporting families and businesses while maintaining control of the public finances. The result is a package of targeted measures intended to ease the cost of living, encourage investment and lay the foundations for longer-term economic growth.

Rather than increasing the headline rates of Income Tax, National Insurance or VAT, the Government has focused on more specific changes to raise revenue. These include higher taxes on certain savings and rental income, alongside a temporary increase in the surcharge paid by banks. The aim is to fund household support and wider spending commitments without introducing broad-based tax rises.

For households, energy costs are a key priority. A one-off £100 payment will be available to eligible households in England in council tax bands A to D, with equivalent funding for the devolved nations. Other measures include extending the reduction in VAT on electricity bills, maintaining the fuel duty freeze and increasing the National Living Wage and National Minimum Wage.

There is also welcome news for savers. Plans to reduce the annual Cash ISA allowance from £20,000 to £12,000 for under-65s have been scrapped, preserving existing arrangements for tax-efficient cash savings. However, the Government’s intention to introduce a new starter ISA to replace the Lifetime ISA raises further questions about the future of tax-efficient saving for first-time buyers.

The outlook for the wider economy remains mixed. The Office for Budget Responsibility expects UK economic growth to reach 1.2% in 2026 before slowing to 1% in 2027. Inflation is forecast to average 3.1% this year and 3.4% next year, before returning to the Government’s 2% target in 2028. These figures underline the importance of maintaining a long-term perspective when making financial decisions.

For investors, savers and those approaching retirement, the Budget provides an opportunity to review existing arrangements and consider whether financial plans remain appropriate. While some measures offer immediate support, changes to the taxation of savings and property income could have longer-term implications for individual circumstances.

So what does the Autumn Budget 2026 mean for you?

The overall message is one of targeted support rather than sweeping tax changes. Energy bills and household costs are being addressed, existing Cash ISA arrangements have been retained, and the Government is seeking to encourage investment while managing the pressure on public finances.

Our full Guide to the Autumn Budget 2026 breaks down the key announcements and explains what they could mean for your money, your family and your business. You can read or download the guide below.

If you would like to understand how the Budget might affect your financial plans, or discuss whether any changes are worth considering, the team at Kellands is here to help. Get in touch to arrange a conversation with one of our financial planners.

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