Your Autumn Budget summary

John Healey delivered his first Autumn Budget as Chancellor today, setting out the Government’s latest tax and spending decisions and what they could mean for households, savers and investors.

Describing it as a Budget “built on fiscal discipline”, the Chancellor provided updates on ISAs, pensions, savings and property income, household bills, wages and support for businesses.

Alongside the announcements, revised forecasts provided the latest outlook for UK economic growth and the public finances.

Here are our key takeaways and what they mean for your finances.

Cash ISA allowance to remain at £20,000

Savers will continue to be able to pay up to £20,000 a year into a Cash ISA, provided they have not used any of their annual ISA allowance elsewhere.

The Government had previously proposed limiting Cash ISA contributions to £12,000 a year for people under 65 from April 2027, however, this change will no longer go ahead.

The Chancellor also announced that the Government will work with the financial services sector to develop a new Starter ISA. This will be designed to make investing more accessible and encourage more people to begin saving and investing for their future.

New support announced for first-time buyers

The Government announced plans for a new First Time Buyer ISA, which would replace the existing Lifetime ISA.

The Chancellor also announced plans to change what happens when Lifetime ISA savings are used to buy a property above the scheme’s property price limit. Under the proposed change, affected savers would get back at least the amount they originally paid in.

These are proposed changes, so the existing Lifetime ISA rules continue to apply until any changes take effect.

Income Tax protection for State Pension recipients

From April 2027, the full new State Pension is set to rise to £250.70 a week, or around £13,036 a year, meaning it will exceed the current £12,570 Personal Allowance.

The Government therefore plans to introduce a new Pension Tax Allowance. This will ensure that, during this Parliament, people with total income no higher than the full new State Pension will not have to pay Income Tax because of increases to the State Pension.

The basic State Pension is set to increase to £192.10 a week, equivalent to approximately £9,989 a year, from April 2027. The amount each person receives will continue to depend on their individual entitlement

The existing State Pension triple lock will remain in place for the rest of this Parliament. From April 2030, it will be adjusted so the State Pension continues to rise by at least inflation or 2.5%, while maintaining its value relative to average earnings over time.

Tax on savings and property income to rise

From April 2027, the Income Tax rates charged on taxable savings income and property income will increase by two percentage points.

This means people with taxable savings or property income may pay more tax, depending on their individual circumstances and any allowances available to them.

The Chancellor said there would be no equivalent increase to the Income Tax rates applying to employment or dividend income.

Minimum wage increases confirmed

The National Living Wage and National Minimum Wage will both increase by 3.9%.

From April 2027, the National Living Wage will increase to £13.21 per hour, equivalent to an increase of £910 in the gross annual earnings of a full-time worker on the National Living Wage. The National Minimum Wage for 18 to 20-year-olds will also increase to £11.27 per hour.

Help with household energy costs

Households in Council Tax bands A to D in England will receive a £100 Household Energy Payment this winter. The Government has said the payment will be made directly into the bank accounts of eligible households and will benefit around 20 million households.

The temporary VAT reduction applying to electricity bills will also continue until July 2027. The Chancellor said this would reduce the annual energy price cap by approximately £50.

Business and entrepreneurship highlights

The Chancellor also announced a range of measures affecting business owners, entrepreneurs and employers.

These included:

• Reducing the lifetime limit for Business Asset Disposal Relief from £1 million to £500,000. The Government said this would result in no change for three in four claimants.
• Increasing the Small Business Rate Relief threshold so that a further 70,000. retail, hospitality and leisure (RHL) businesses pay no business rates at all.
• Introducing a new founders’ relief, offering a 10% Capital Gains Tax rate on qualifying lifetime gains of up to £10 million for founders of successful businesses.
• Increasing the trading allowance from £1,000 to £3,000 a year.
• Developing a Young Entrepreneurs Allowance, intended to cover one year of living costs for eligible young business founders.
• Doubling the British Business Bank’s commitment to women-led businesses in funds to £200 million.
• Retaining full expensing for eligible business assets and increasing the main first-year allowance for other assets from 40% to 50%.

Fuel Duty reduction extended

The existing 5p reduction in Fuel Duty will remain in place until July 2027.

The measure had previously been due to expire at the end of 2026 but has now been extended as part of the Government’s wider support with household costs

OBR economic and fiscal outlook

Alongside the Budget, the Office for Budget Responsibility published its latest forecasts for the UK economy.

The forecast expects the economy to grow by:

• 1.2% in 2026
• 1.0% in 2027
• 1.6% in 2028
• 1.8% in 2029
• 1.7% in 2030
• 1.6% in 2031

The Chancellor also said that movements in financial markets, including concerns about debt and inflation in the UK and overseas, had added £14 billion to the Government’s borrowing costs this year.

The Government’s fiscal headroom, representing the margin available before its fiscal rules would be broken, is forecast to stand at £15 billion in 2030.

We’re here to help you do more with your money

If you’re unsure what any of the announcements could mean for you, your financial adviser can help you review your plans and consider whether any changes are needed.

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.

ISA eligibility and tax rules apply. You should ensure your contribution does not result in your total ISA contributions within the tax year exceeding £20,000.

True Potential Wealth Management is authorised and regulated by the Financial Conduct Authority. FRN 529810. Registered in England and Wales as a Limited Liability Partnership No. OC356611.

True Potential Investments LLP is authorised and regulated by the Financial Conduct Authority. FRN 527444. Registered in England and Wales as a Limited Liability Partnership No. OC356027.

True Potential LLP is registered in England and Wales as a Limited Liability Partnership No. OC380771.

Information accessed from Gov.uk and Budget 2026 document and up-to-date as of 28/10/26.