October 28, 2026
Budget 2026 – In brief
| The OBR upgraded its UK growth forecast to 1.2% for 2026, followed by 1% in 2027, against a backdrop of continued economic uncertainty | A 3.9% Minimum Wage increase from April and a Pension Tax Allowance (PTA) for pensioners relying solely on the full new State Pension | The £20,000 Cash ISA allowance will remain and Income Tax on property and savings income will rise by two percentage points from April |
Chancellor John Healey delivered his first Budget today, promising households and businesses “breathing space” amid what he called “global economic storms.” Citing conflict in the Middle East, rising energy prices and borrowing costs, he outlined measures to ease financial pressures while supporting growth.
The Office for Budget Responsibility (OBR) upgraded its UK growth forecast to 1.2% for 2026, followed by 1% in 2027, against a backdrop of continued economic uncertainty.
Some of the key measures announced include:
- Cost of living and banks – a £100 winter energy payment for around 20 million eligible households in England, with funding for similar support provided to the rest of the UK. Extended electricity VAT relief and plans to remove gas standing charges. A temporary three percentage point increase in the Bank Surcharge to help fund energy support
- Wages and pensions – a 3.9% Minimum Wage increase from April, a Pension Tax Allowance (PTA) for pensioners relying solely on the full new State Pension, Triple Lock commitment
- Savings and taxation – the £20,000 Cash ISA allowance will remain, with a new Starter ISA proposed. Income Tax on property and savings income will rise by two percentage points from April 2027
- Business and enterprise – expanded Business Rates Relief, a reduction in the Business Asset Disposal Relief lifetime limit to £500,000, and new Founders’ Relief offering 10% Capital Gains Tax on up to £10m of qualifying gains
- Entrepreneurs and AI – support for young entrepreneurs, £200m committed to women-led businesses and an additional £500m for AI safety and security
- Housing – further social and affordable housing investment, rough sleeping support and £4.7bn in lending for the previously announced Your First Home scheme, available in England only.
We’ll be back in touch tomorrow with more detail on the Budget announcement.
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding of the Budget taxation and HMRC rules and can be subject to change in future. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
All details are believed to be correct at the time of writing (28 October 2026)
