The clock is ticking down. The autumn budget of Chancellor John Healey will take place on Wednesday 28 October 2026. This will mark the first big event in the fiscal calendar of the new administration led by Prime Minister Andy Burnham. In particular, this is information that will be of interest to London businessmen, directors, and landlords. 

The following is some important information that you should know, along with things that you can do while the existing laws remain the same.

What we know so far

Nothing is known with certainty yet, and it must be stated directly: anything you might have heard about particular tax reforms prior to 28 October was mere speculation and not policy. Official announcements made so far:

• The Budget is going to be formed according to the principles of "fiscal discipline" declared by the Chancellor, as well as ensuring some stability of the economy.

• There are currently no indications of the possibility of any increases in the rates of income tax, VAT and National Insurance.

• The Chancellor has declared that funding the government priorities would most likely require people to "pay a little more tax," but didn't say how.

• Some steps are going to be taken regardless of the Budget, such as abolishing VAT on domestic electricity from October 2026 and lowering business rates for public houses, social clubs and venues for live music.

To summarize: the direction has not yet been established. The speech delivered by the Chancellor at the Labour party conference in Liverpool and the consultations conducted by the Treasury on business rates and policy issues in September would give us some clue.

What makes this Budget unique for entrepreneurs?

Two main aspects set 2026 apart from a usual Budget year:

1. New Chancellor without Treasury experience. Although John Healey has experience in the Treasury, he is fairly new to his position at the Treasury, having served previously in a defense position. Budgets set by a new Chancellor are likely to have structural reform instead of adjustment. If you are an entrepreneur whose business will be affected by taxes like corporation tax, business rates, or employment, you need to watch out for this budget.

2. The effects of fiscal drag are currently influencing you. The tax band for income will remain unchanged up to April 2031. What does this mean? Without altering tax bands, any rise in your salary and that of your employees will automatically push you into a higher tax band.

Steps to be taken before 28th October?

Rather than thinking about the possible outcomes, you must make use of all that you know and what can be clearly inferred from the existing rules. After the budget is announced, most of these may have been drastically changed.

Use up your allowance for the Individual Savings Account. This allowance, which is worth £20,000, is available for each tax year only and cannot be carried forward to the following year. You will gain nothing from retaining it.

Use your allowance for the Capital Gains Tax. With the allowance being worth only £3,000 per year, it may be easy to forget about it but it can never be used retrospectively. If you are planning to sell any asset including your shares or even your second property in the near future, it would be wise to discuss the issue of selling before the Budget and using the existing allowance and rates with us.

Consider the annual allowance space in your pension. Most relevant if you are an executive who takes profits through contributions to his/her pension account and not through salary or dividends. The contribution made now will be under the current year's rules.

Consider your salary versus dividends. Particularly useful if you are an executive whose profits come through contributions to his/her pension account rather than salaries or dividends. All the contributions made prior to the Budget will apply to the current year's rules.

Do not procrastinate in making decisions when there is no reason to. In case you have been thinking of selling off assets, making a sizable pension payment, or undertaking some form of restructuring that would require you to work within the existing parameters, the most prudent course would be to do so.

Our Opinion

Instead of guessing what might happen in the future on Budget day, we should help our clients implement their well-tested methods. These clauses will operate within the existing laws regardless of whatever is announced on 28th October, and even if something is announced in the Budget, you will still find your position strengthened due to the allowances available this year.

For any pre-Budget review of the tax position of your company or individual taxes, please get in touch with us by 28th October. We will talk about what is certain, what needs to be done right away, and what should be noted after the Chancellor takes his seat.

This article is written considering the finalisation of the Budget date and the information that has been available in the public domain up to the end of August 2026. Tax rates in relation to the Autumn Budget 2026 are yet to be announced, and this article will be updated accordingly.