Autumn Budget 2026: when is it and what will it contain?
We look at what could be announced, from tax and pensions to benefits, savings and more.
The Budget will take place on Wednesday 28 October.
Newly appointed Chancellor John Healey announced the date last week, stating in a video message that the upcoming Budget will ‘move money and power out of Westminster and into every postcode around Britain’.
Healey noted that it would be built on ‘fiscal discipline’ and would give ‘businesses and families some of the stability they need to plan for the future’.
Here, we look at what could be announced as part of this year’s Budget, covering tax, pensions, benefits, savings and more.
What the confirmed changes mean for your wallet
Prime Minister Andy Burnham kick-started his time in government, announcing a handful of cost of living measures to provide ‘more breathing space’ to households struggling with bills.
This includes a £2 cap on bus fares, the removal of VAT from electricity bills, and a business rates tax cut for pubs and clubs.
Burnham also announced that all regional mayors in England will receive a share of income tax revenue as part of his drive to transfer power from Westminster to local leaders. English strategic authorities will also be allowed to keep some cash from business rates collected in their areas, gaining greater control over services such as housing, transport and skills.
There are no immediate changes planned to stamp duty or council tax, ending a period of speculation earlier this summer after Burnham previously voiced support for a land value tax in place of both.
Ministers were informed through a joint letter from Burnham and Healey that funding will be shifted away ‘from unproductive or legacy programmes’ of government to pay for these new reforms.
This year’s Budget is the earliest the UK has seen since 2021, when it was held on 27 October. In 2024, the Budget took place on 30 October.
Budget rumours
While nothing is officially confirmed until Budget day itself, here’s a breakdown of the key rumours circulating so far, and how they could impact your finances. Remember not to make major financial decisions based on speculation alone.
Personal allowance and income tax threshold changes
During his Makerfield by-election campaign, Burnham hinted at revising the personal tax allowance after voters raised it as a key concern.
He said the ‘frustration about the personal allowance’ was ‘lodged’ in his mind, and confirmed that it would be reviewed at the next Budget. However, he made no commitment to changing it, noting that it would be ‘difficult given the financial circumstances in which we find ourselves’.
The Prime Minister has committed to Labour’s manifesto pledge not to raise income tax rates. However, experts still expect tax changes based on his spending plans that have already been announced.
Social care overhaul
Exact details on how the proposed social care overhaul will be delivered are expected in the upcoming Budget. Burnham has promised a new national care service, with better pay and training for care workers, alongside closer integration with the NHS.
Burnham stated that he wants to extract more from existing budgets to fund the reforms, stressing that all plans will be fully funded: ‘I think we owe it to the public before we talk about tax rises… you first have to look the public in the eye and say “Are we doing everything we can do from within what we’ve got?”‘
A review of social care will now be published next summer instead of in 2028.
Stricter rules on claiming benefits
Burnham is looking to cut down on welfare spending. Speaking to the BBC’s Laura Kuenssberg, he said that in future, certain benefits – including mental health support – will become conditional on people taking work rather than staying at home.
Chancellor John Healey is expected to confirm the plan for welfare spending in the Budget, including target cuts for the coming years.
Kindly shared by Which? image courtesy of Adobe
