Autumn Budget 2026

Key information from the Autumn Budget 2026

Cost of living and energy

• Firms will get a 25% reduction on electricity bills under a new scheme for 10,000 businesses. It starts in April, and payments will be backdated to cover this year’s energy costs.
• The 55p per mile tax-free rate for work journeys up to 10,000 miles is now permanent. Beyond 10,000 miles, the rate rises from 25p to 35p per mile.

Wages, benefits and pensions

• The legal minimum wage will go up by 3.9% from April, adding to employers’ payroll costs.

Business taxes

• The surcharge banks pay on their profits will double from 3% to 6%. The higher rate applies for 15 months from January.
• High Street shops in England will start paying business rates from a higher threshold, up from £12,000 to £18,000. Properties with a rateable value below this level will pay no rates.

Devolution

• By the end of the decade, all business rates will be kept locally, and mayors will hold on to 20% of the revenue from next year.
• Mayors and regional bodies in England will have more control over spending, starting with £285m next year for areas such as housing, transport and High Streets.
• The government and mayors will design a £1.5bn borrowing facility together to fund larger projects.

UK growth, inflation and debt

• The OBR expects the economy to grow by 1.2% this year, a small upgrade on its earlier 1.1% forecast.
• Growth is then forecast to slow to 1% next year, down from the previous 1.6% estimate, before recovering to 1.6% in 2028.
• Inflation is forecast to average 3.1% this year and 3.4% in 2027, higher than earlier forecasts, before returning to the 2% target in 2028.
• Government borrowing is forecast to be higher than previously expected in every year of the forecast period.
• Borrowing as a share of GDP is still expected to fall, to 4.2% this year and to 1.8% by 2030/31.