28 October 2026

John Healey referred to his first Budget as a Budget for Breathing Space and it could be said to consist of lots of small breaths given that he announced a raft of new measures, most of which will have a relatively small impact on individuals and businesses.

Many will be relieved that this year’s Budget was very much “steady as she goes” and did not repeat Labour’s first two Budgets which raised significant amounts of additional tax, particularly from businesses, but others will be disappointed that the Budget will have little impact on increasing economic growth in the short-term.

The Chancellor also referred to his Budget as being for business and in particular entrepreneurs, but almost in contradiction announced that CGT Business Asset Disposal Relief (previously called Entrepreneurs Relief) would be further eroded, such that the relief now offers very little incentive to Owner Managed Businesses when compared to several years ago. On a more positive note, the government have issued a consultation document on a proposed new CGT relief called Founders Relief and it will be interesting to see how this relief evolves during the consultation process before its planned introduction in April 2027.

The new Chancellor (and Prime Minister) have continued to U-turn on some of their predecessors’ changes, with the proposed new £12,000 limit on Cash ISAs being abolished and the long-standing £20,000 limit being retained. It was hoped that last year’s partial U-turn on the “Farmers Tax” (Agricultural Property Relief from Inheritance Tax but also applies to other family businesses via Business Property Relief) would be continued with the relief being fully restored, given that this would have a relatively small cost to the Exchequer, but unfortunately this appears to have been kicked into the long grass for now.

John Healey’s first Budget could be described as low key and aimed to avoid any short term damage, which supports the argument that the government may seek to take advantage of the Burnham Bounce and call an early General Election next year and it is quite plausible that we may have another new Chancellor next year!

The Autumn Budget 2026 announcements cover the following topics:

Please click here to read and download the Autumn Budget 2026 highlights in newsletter format.

If you have any queries on the Autumn Budget 2026 please do not hesitate to contact one of our tax specialists on 01228 530913 or 01768 864466 or by email at hello@doddaccountants.co.uk.