Autumn Budget 2026: what could it mean for your finances?
Chancellor John Healey will deliver his first Budget on 28th October, with attention now turning to what his plans for tax and spending could mean for households, savers and investors.
Ahead of Budget day, we explore some of the key areas to watch and what could be announced.
What happens on Budget day?
The Budget speech traditionally takes place around 12:30pm after Prime Minister’s Questions, with the Chancellor setting out the Government’s plans for the economy, taxation and public spending.
Once the speech has concluded, the Leader of the Opposition responds before MPs begin several days of debate on the measures announced. MPs will then vote on the proposals, with legislation required to make changes to taxation permanent.
The UK economy ahead of the Budget
The UK economy has continued to grow in 2026. According to the latest figures from the Office for National Statistics (ONS), GDP grew by 0.7% in the three months to August, compared with 0.5% in the previous three-month period.
However, the economic picture remains mixed. Inflation, borrowing costs and the outlook for the public finances are among the factors forming the backdrop to John Healey’s first Budget.
The strength of the economy and expectations for future growth will therefore be important considerations as the Chancellor sets out his tax and spending plans.
Key areas to watch in the Autumn Budget
While nothing is certain until the Budget is delivered, several areas affecting savers, investors and households have been the subject of discussion. Before making any decisions based on potential changes, please speak to a financial adviser.
Pensions
There has been speculation about further changes to pension tax rules, but nothing additional has been confirmed. Changes to how pensions are treated for Inheritance Tax, as well as changes to pension salary sacrifice, are already planned, although these are separate from anything that may be announced in the Budget.
One area to watch is the State Pension. With the triple lock set to remain in place until April 2030, the State Pension is expected to rise by 3.9% in April 2027.
This would take the full New State Pension from £241.30 to around £250.70 a week, or approximately £13,036 a year, with updated rates expected to be confirmed at the Budget.
Inheritance Tax
From 6th April 2027, most unused pension funds and pension death benefits are due to become subject to Inheritance Tax.
We may hear more at the Budget about how these changes will work in practice.
There has also been speculation about wider changes to Inheritance Tax, but these have not been confirmed.
Under current rules, the main Inheritance Tax threshold is £325,000. An additional £175,000 allowance may apply when a home is passed to certain family members. Both thresholds are currently frozen until 2031.
There is no need to change your plans based on speculation. If you are concerned about how the confirmed changes could affect your estate, speak to your financial adviser before taking action.
Income Tax Thresholds
Income Tax thresholds are currently frozen until April 2031. This means that if your income increases while the thresholds stay the same, you could pay more Income Tax or move into a higher tax band.
There has been debate about whether the Personal Allowance could be increased, but no change has been confirmed.
The Institute for Fiscal Studies estimates that increasing the Personal Allowance with inflation each year from April 2027 would eventually cost the Treasury around £8.4 billion a year, based on current inflation forecasts.
Capital Gains Tax
Capital Gains Tax (CGT) has been an area of speculation ahead of the Budget, following calls for rates to be increased. However, recent reports suggest The Chancellor has rejected an increase amid concerns that higher rates could discourage investment or lead people to defer the sale of assets.
Under current rules, CGT is charged at 18% on gains that fall within the basic-rate band and 24% above it. Individuals currently have a £3,000 annual tax-free allowance.
If you have any questions about selling personal investments or other assets, speak to your financial adviser.
Focus on the bigger picture
With speculation increasing ahead of Budget day, it can be easy to focus on what might change. However, until the details are confirmed, keeping sight of your longer-term financial plans remains important.
Your financial adviser can help you understand any announcements in the context of your own circumstances and consider whether your plans need to change.
Here to help you understand the Budget
Once the Budget has been delivered, we’ll provide our analysis of the key announcements through our reaction video and blog, helping you understand what they could mean for you.
In the meantime, if you have any questions about your finances, please get in touch and speak to your financial adviser before making any decisions.
With investing, your capital is at risk. Investments can fluctuate in value and you may get back less than you invest. This material is for general information only and does not constitute a personal recommendation or financial advice. The investments referred to may not be suitable for all investors.
It’s important to remember tax is subject to an individual’s personal circumstances and tax rules can change at any time.
Pension eligibility and tax rules apply. You should ensure your contribution does not result in your total Pension contribution within the tax year exceeding £60,000 or 100% of your earnings, whichever is lower.
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