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Autumn Budget 2026: What Is Already Confirmed for Small Businesses Before 28 October

Chancellor John Healey delivers the Autumn Budget on Wednesday 28 October 2026. Several changes affecting small businesses are already confirmed, from the April 2027 Making Tax Digital threshold to business rates relief for pubs.

By Entrepreneur Group · Published 26 October 2026 · Updated 31 October 2026

Chancellor John Healey will deliver the Autumn Budget on Wednesday 28 October 2026, his first since the new government took office in July. He announced the date on 31 July and said the Budget "will be built on fiscal discipline. It will meet our fiscal rules", according to Civil Service World. Several measures that matter to small businesses are already confirmed. Others are only speculation.

Updated 29 October 2026: the Budget has now been delivered. Several items listed below as expected are confirmed: the National Living Wage rises to £13.21 an hour from 1 April 2027; the Business Asset Disposal Relief lifetime limit falls from £1 million to £500,000 from 6 April 2027, alongside a new 10% Founders' Relief; and the Small Business Rates Relief threshold rises to £18,000 for retail, hospitality and leisure properties in England from 1 April 2027. These figures come from the HMRC overview of tax legislation and rates and the Low Pay Commission. Updated 31 October 2026: the electricity VAT and fuel duty entries below now reflect the Budget's extensions of both measures to 30 June 2027. The rest of this article reflects what was known before the Budget.

This guide separates the two, so you can plan around what is known and avoid reacting to rumours.

Already confirmed

• Making Tax Digital for Income Tax: sole traders and landlords with income over £30,000 must use it from April 2027, after the £50,000 group joined in April 2026.
• Business rates for pubs, clubs and live music venues in England: a 20% cut from April 2027, worth around £100 million a year to nearly 32,000 venues. The government says the exclusion for the very largest venues, and wider reform including Small Business Rates Relief, will be set out at the Budget.
• VAT on domestic electricity: cut from 5% to 0% from 1 October 2026. The cut was due to end on 31 March 2027, but the Budget extended it to 30 June 2027. Business electricity at the standard rate does not benefit.
• Fuel duty: frozen at 52.95p a litre until 31 December 2026. Before the Budget, Simply Business noted it was due to rise to 55.95p in January 2027 and 57.95p in March 2027. The Budget has since extended the temporary 5p a litre cut to 30 June 2027, with rates returning to their pre-cut levels on 1 July 2027 and then rising with RPI.
• Pensions and inheritance tax: from 6 April 2027 most unused pension funds count towards an estate for inheritance tax.
• Red tape: the government announced on 23 October that it will pause the Companies House profit and loss filing requirement until April 2028 and extend tariff suspensions on over 250 products. It says full details of the admin savings will be published on 28 October.

Expected, but not confirmed

Simply Business reports that the government has indicated it does not plan to raise the main rates of income tax, VAT or National Insurance, though nothing is confirmed until the Budget. It lists areas that commentators are watching, all of which are speculation for now:

• the next National Living Wage rate, which would apply from 1 April 2027;
• changes to Business Asset Disposal Relief;
• a possible increase in the Small Business Rates Relief threshold;
• changes to employer costs such as the Employment Allowance;
• whether the electricity VAT cut is extended;
• capital gains tax, last changed in October 2024.

Civil Service World also reports that the Budget is expected to set out how regional mayors could keep a share of income tax and business rates. Healey said the Budget "moves money and power out of Westminster, and into every postcode around Britain".

How to prepare

This section is editorial guidance, not tax advice.

• Do not act on rumours. Selling a business or bringing forward a disposal because of speculation about reliefs can be costly. Wait for the published documents and take advice.
• Read the documents, not just the speech. Many small business measures appear only in the Budget documents and HMRC notes published the same day.
• Check effective dates. Most tax changes start in April 2027, giving time to adjust prices, pay and plans.
• Update your forecasts. Once the minimum wage and any rates changes are known, update your 2027/28 cash flow.

Our coverage of the Budget's measures for founders is linked in the update at the top of this article.

Frequently asked questions

When is the Autumn Budget 2026?

The Autumn Budget is on Wednesday 28 October 2026. Chancellor John Healey announced the date on 31 July 2026.

Will the Budget raise income tax, VAT or National Insurance?

The government has indicated it does not plan to raise the main rates of income tax, VAT or National Insurance, but no decisions are confirmed until the Budget is delivered.

What small business changes are already confirmed for 2027?

Making Tax Digital for Income Tax extends to income over £30,000 from April 2027, and pubs, clubs and live music venues in England get a 20% business rates cut from April 2027.

Sources

1. Civil Service World: Healey sets October date for Autumn Budget (31 July 2026) (reviewed 27 October 2026)
2. Simply Business: Autumn Budget 2026 predictions for small businesses (reviewed 27 October 2026)
3. GOV.UK: Burnham means business: PM slashes business rates bills for pubs, clubs and live music venues (reviewed 27 October 2026)
4. GOV.UK: Government slashes red tape and tariffs to give businesses breathing space (23 October 2026) (reviewed 27 October 2026)
5. HMRC: Budget 2026 overview of tax legislation and rates (OOTLAR) (reviewed 31 October 2026)
6. Low Pay Commission: LPC recommendations take the National Living Wage to £13.21 (28 October 2026) (reviewed 29 October 2026)