Autumn Budget 2026: what could it mean for UK business owners?
The Autumn Budget will be delivered on Wednesday 28 October 2026, alongside updated economic and fiscal forecasts from the Office for Budget Responsibility. Chancellor John Healey has said the Budget will be built around fiscal discipline, while giving businesses and families greater stability to plan ahead. GOV.UK
For business owners, the main questions are likely to be around tax, business rates, investment and whether the Government introduces further measures to raise revenue without increasing the headline rates of income tax, VAT or corporation tax.
Nothing is confirmed until the Chancellor delivers the Budget, but there are several areas worth watching.
Why is the Autumn Budget 2026 particularly important?
The Chancellor has relatively limited room to manoeuvre, which means even a Budget intended to provide stability could contain targeted tax changes.
Higher government borrowing costs and additional spending pressures have reduced the amount of fiscal headroom available since the spring. Recent estimates reported by the Financial Times suggest this buffer may have fallen materially, increasing the pressure on the Treasury to balance support for households and businesses with its fiscal rules. Financial Times
The Chancellor has said the Budget will focus on investment, innovation and jobs, while the Government has also stressed the importance of giving businesses more certainty. PwC
For SME owners, that means this may be less about one major announcement and more about the cumulative effect of several smaller changes.
Could taxes rise in the Autumn Budget?
Further tax rises are possible, although current expectations are focused more on targeted measures than large increases to the main headline business taxes.
The Government has continued to signal that the main rates of income tax, VAT and corporation tax will not increase. With corporation tax already at 25% for larger companies, attention has instead turned to other ways of raising revenue. MarketScreener
Areas being discussed ahead of the Budget include changes affecting capital gains, wealth and the banking sector. These remain possibilities rather than confirmed Budget measures.
For somebody who owns a business, the detail matters. Changes to capital taxes can affect decisions about investment, succession and eventually selling a company, even where the headline rate of corporation tax remains unchanged.
Could Capital Gains Tax change again?
Capital Gains Tax is one of the areas receiving attention ahead of the Budget, although no further change has yet been confirmed.
Professional advisers have identified the possibility of further CGT changes as one of the issues to watch on 28 October. Osborne Clarke
For business owners considering an eventual sale, this is particularly relevant because tax can affect the net proceeds retained after a transaction.
That does not mean owners should rush into a sale because of Budget speculation. The commercial readiness of the business, quality of the buyer and structure of the deal are usually much more important than trying to complete a transaction around a rumoured tax change.
Anyone considering selling should take appropriate tax advice based on their own circumstances.
What could happen to business rates?
Business rates remain an important issue for SMEs, although a number of changes are already in force for 2026/27 rather than waiting for this Budget.
Following the 2025 Budget, new business-rate multipliers took effect from April 2026. Retail, hospitality and leisure properties with qualifying rateable values below £500,000 benefit from lower multipliers, while properties with rateable values of £500,000 or more are subject to a higher multiplier. GOV.UK
The Supporting Small Business scheme also limits increases for qualifying businesses losing some or all of certain reliefs. For 2026/27, eligible bill increases are capped at the higher of £800 or the relevant transitional-relief percentage cap. GOV.UK
Further business-rate reform remains an area businesses will be watching closely, particularly in sectors where premises represent a significant proportion of costs.
Will the Budget offer more support for small businesses?
There are signs that support for business investment and growth will feature in the Budget, but the scale and form of any new measures remain unclear.
The Government has said the Budget will back British jobs, skills and businesses and move more funding and decision-making away from Westminster. GOV.UK
The Prime Minister and Chancellor have also been holding discussions with business leaders ahead of the Budget, with investment, productivity and sustainable growth among the subjects under discussion. Financial Times
Businesses are likely to be particularly interested in measures affecting:
- investment incentives
- access to finance
- energy costs
- skills and recruitment
- business rates
- regional investment
- tax administration
PwC has suggested that many businesses would value certainty and simpler administration as much as any major new incentive following several years of tax and policy change. PwC
What about business investment and growth?
Investment appears likely to be one of the central themes of the Budget.
The Chancellor has highlighted investment, innovation and jobs as priorities, while the Government has said it wants to give businesses greater confidence to plan for the future. Osborne Clarke
For SMEs, however, investment decisions rarely depend on one Budget announcement alone.
The cost of borrowing, energy, wages, business rates and general customer demand all influence whether an owner decides to recruit, buy new equipment, open another location or acquire another business.
The most useful Budget measures for many SMEs may therefore be those that improve predictability, rather than simply providing short-term incentives.
Could the Budget affect business sales and valuations?
Potentially, but the impact on an individual business is likely to depend more on its financial performance and buyer demand than on the Budget alone.
Tax changes can influence the timing or structure of transactions. Economic policy can also affect borrowing costs, confidence and the appetite of buyers to invest.
But when we speak to prospective buyers, the fundamentals of the business normally remain the most important factors.
They will still want to understand:
- sustainable profit and cash flow
- recurring or repeat income
- customer concentration
- the strength of the management team
- dependence on the current owner
- future growth opportunities
- the condition of the company's financial records
A strong business does not suddenly become unattractive because of one Budget, just as an underlying weakness is unlikely to disappear because the Government introduces a new tax incentive.
Should you sell your business before the Budget?
For most owners, a Budget announcement on its own is not a good reason to rush a business sale.
Selling a company properly can take time. Preparing information, establishing value, finding credible buyers, negotiating terms and completing due diligence cannot sensibly be compressed simply because there is speculation about a tax change.
If you are already thinking about selling within the next few years, however, the Budget is a useful reminder to understand your position.
That might mean getting an up-to-date valuation, reviewing the factors that affect value and speaking to your accountant or tax adviser about how potential changes could affect your personal circumstances.
The earlier you understand those issues, the more options you generally have.
What should business owners do before 28 October?
There is little value in making major decisions based purely on rumours, but owners can use the period before the Budget to understand where they currently stand.
It is worth knowing:
- what your business is realistically worth today;
- how changes in tax could affect you personally;
- which costs are most exposed to government policy;
- whether planned investment still makes commercial sense; and
- whether your business would be ready for a sale if your plans changed.
The Chancellor will confirm the actual measures on 28 October, so the distinction between what has been announced and what is simply being discussed is important.
Thinking about selling in the next few years?
You do not have to be ready to sell before you start planning for it.
At Intelligent, we can provide a free, confidential business valuation and practical information about the current buyer market, recent sales activity, and the factors likely to influence the value of your business.
Our aim is to give you a clearer picture of your options so you can decide on your own time.
No jargon. No pressure to sell. Just clear, useful advice.