The Autumn Budget 2026 lands on Wednesday 28 October, and it’s the first one from Chancellor John Healey. If you’ve got a payslip, savings, a pension or an energy bill, something in that speech could touch your money.
So I’ve pulled together what’s already confirmed, what’s being rumoured and what I’m doing before Healey stands up. Bear in mind that rumours are just rumours until the Chancellor says them out loud in the Commons.
When Is the Autumn Budget 2026?
The Budget is on Wednesday 28 October 2026. It’s Healey’s first as Chancellor, after Andy Burnham moved him from Defence to the Treasury when he became Prime Minister in July.
Alongside the speech, the Office for Budget Responsibility publishes fresh forecasts for the economy and the public finances. That matters, because the Institute for Government reckons those forecasts have probably got worse since March.
In plain English, the Treasury needs money. The only real question is who it comes from.
Will Income Tax Go Up in the Autumn Budget 2026?
Probably not the headline rates. Labour’s manifesto ruled out raising income tax, National Insurance for workers or VAT, and Healey has said he’ll stick to that.
However, there’s more than one way to take money from your pay packet.
The Personal Allowance Is Frozen Until 2031
The personal allowance is stuck at £12,570 and the higher rate threshold at £50,270. Both are frozen until April 2031, according to the government’s own tax rates document.
Meanwhile, wages keep rising. Every pay rise drags more of your income into tax, and more people into the 40% band. Economists call it fiscal drag. I call it a stealth tax, because that’s exactly what it is.
If you want to see what that does to a normal salary, my breakdown of £30k after tax in the UK shows how much actually lands in your account.
Could the Personal Allowance Rise?
Burnham has said the personal allowance may be reviewed in this Budget, but he hasn’t promised anything. It isn’t cheap either. The Centre for Economics and Business Research estimates a £500 rise would cost around £5bn a year.
So if anything happens, I’d expect a small, symbolic bump rather than a proper unfreeze. Some accountants are pencilling in £100 to £200, which works out at a few pounds a month for most taxpayers.
State Pension Changes to Watch in the Budget
Will Pensioners Pay Tax on the State Pension?
This one has been coming for years. Earnings grew by 3.9% in the figures used for the triple lock, so the full new State Pension is expected to rise from £241.30 to around £250.70 a week from April 2027. That’s roughly £13,036 a year.
For the first time, the full new State Pension would sit above the £12,570 personal allowance. Without a fix, lots of pensioners with no other income would owe HMRC a small tax bill every year.
Thankfully, Pensions Minister Torsten Bell has said people whose only income is the State Pension won’t pay tax on it from April 2027. The detail of how that works is still missing, so watch for it on Wednesday.
If you’re not sure you’ll get the full amount, check your record first. My guide to State Pension NI years explains how many qualifying years you need. You can also see how the last rise played out in my post on the State Pension increase for 2026.
What Happens to the Triple Lock?
Burnham has said he wants to swap the triple lock for a double lock from 2030, using the savings to help fund a National Care Service. We don’t know the full detail yet, so anything in this Budget is worth reading closely if you’re close to retirement.
Will the Electricity VAT Cut Be Extended?
Since October, VAT on household electricity has dropped from 5% to 0%. It’s a six month measure, running until the start of April 2027.
Don’t get too excited about the savings, though. The Institute for Fiscal Studies worked out it’s worth about £25 for an average household over the full six months.
Healey could extend it beyond March, and given how tight budgets are, I wouldn’t be shocked. If energy costs are biting, my post on energy bills in the UK covers why prices have been so jumpy.
Tax Changes Already Coming, Whatever Healey Says
Here’s the bit a lot of people miss. Plenty of changes were announced in last November’s Budget and are already locked in. Wednesday’s speech is unlikely to undo most of them.
Higher Tax on Savings and Rental Income From April 2027
From 6 April 2027, tax on savings interest rises by two percentage points to 22%, 42% and 47%. Property income goes up by the same amount. Dividend tax already rose this April, to 10.75% for basic rate taxpayers and 35.75% for higher rate taxpayers.
I’ve covered who gets caught in my piece on tax on savings interest, and it’s more people than you’d think.
Cash ISA Allowance Cut to £12,000
From April 2027, under 65s can only put £12,000 a year into a cash ISA. The overall ISA allowance stays at £20,000, so the rest has to go into stocks and shares. Over 65s keep the full £20,000 cash limit.
If you’re unsure which wrapper suits you, read my guide to the different types of ISA before the rules change.
Pensions Brought Into Inheritance Tax
From 6 April 2027, unused pension pots and death benefits count towards your estate for inheritance tax. For many families, that changes how pensions get passed on. I’ve broken it down in pensions and inheritance tax from 2027.
Salary Sacrifice Pension Cap From 2029
From April 2029, only the first £2,000 a year of pension contributions made through salary sacrifice will escape National Insurance. Anything above that gets hit by both employee and employer NI.
If you’re not sure whether you use it, here’s how a salary sacrifice pension works.
The Mansion Tax on £2m Homes
From April 2028, homes in England worth £2m or more face an annual charge on top of council tax. It ranges from £2,500 to £7,500 a year depending on the value. The consultation closed in July, so more detail could appear on Wednesday.
What Could Healey Target in the Autumn Budget 2026?
With income tax, NI and VAT rates off the table, the money has to come from somewhere else. Here’s what tax advisers are talking about. None of it is confirmed.
- Capital gains tax: a rise in the main rate, possibly to 28%. Matching it fully to income tax rates has reportedly been ruled out.
- Pension tax free cash: a lower cap on the lump sum you can take.
- Inheritance tax on gifts: limits on how much you can give away out of income each year.
- Expensive homes: further tax on higher value property.
- Business owners: more money taken out of small companies taxed as income.
Notice a pattern? It’s mostly wealth, assets and business owners rather than wages. As someone who runs a manufacturing business, that last one has my attention.
If you’re worried about property gains, my guide to capital gains tax on UK property covers the current rules.
Help for First Time Buyers and Bus Users
It’s not all bad news. The £2 bus fare cap in England is back for the whole of 2027.
There’s also a new first time buyer scheme for new build homes on the way. It offers a 2.5% deposit and a government loan of 20% of the price, with prices capped at £250,000, or £420,000 in London. Full details are due in the Budget.
On top of that, the government plans to replace the Lifetime ISA with a new first time buyer ISA. Anyone saving for a deposit should keep an eye on that.
How to Prepare for the Autumn Budget 2026
Step 1: Don’t Make Big Moves on Rumours
Please don’t rush to take your pension tax free cash because of a headline. Plenty of people did that before the last Budget, the rumoured change never came, and some couldn’t undo it.
Step 2: Use This Year’s Allowances
Your ISA allowance resets every April and doesn’t roll over. If you’ve got spare cash, using it now shelters it from the higher savings tax coming in 2027. A Bed and ISA can help move existing investments into the wrapper too.
Step 3: Check Your Tax Code and Payslip
With thresholds frozen, more people slip into a higher band without noticing. My guide on how to pay less tax in the UK legally covers pension contributions and other ways to claw some back.
Step 4: Read the Small Print After the Speech
The speech never tells the full story. The real detail sits in the documents the Treasury publishes on GOV.UK straight afterwards, and that’s where the surprises usually hide.
Autumn Budget 2026 FAQs
What time is the Budget on 28 October?
The Budget speech usually starts straight after Prime Minister’s Questions, at around 12:30pm.
Will income tax rates rise?
The government has promised not to raise the rates of income tax, National Insurance for workers or VAT. However, the frozen thresholds mean many people will still pay more over time.
Will the State Pension be taxed from April 2027?
The government says people whose only income is the State Pension won’t pay tax on it. If you have other income, like a workplace pension, you’ll still be taxed on anything above your personal allowance.
Is the cash ISA allowance changing?
Yes. From April 2027, the cash ISA limit drops to £12,000 for under 65s. The total ISA allowance stays at £20,000.
My Take on the Budget
Here’s where I land. The government keeps promising not to touch working people’s taxes, while freezing the thresholds that quietly do exactly that. On top of that, savers and investors are already lined up for higher bills from 2027.
You can’t control what Healey says on Wednesday. What you can control is the boring stuff: use your ISA, keep paying into your pension and know your own numbers. That’s what I’m doing.
This post is for information only and isn’t financial advice. Figures are based on announcements and reports before the Budget on 28 October 2026.