Pre-Autumn Budget overview 2026

This article is not intended as Financial Advice. It distinguishes reported proposals and commentary from measures already announced or legislated. The Autumn Budget outcome will only be known after the Chancellor’s speech on 28 October 2026.

On Wednesday 28 October, Chancellor John Healey will deliver his first Budget.

He has said it will be built on fiscal discipline, meet the Government’s fiscal rules and give families and businesses greater stability. Until then, the detail remains unknown, although there is plenty of speculation.

In this overview, we’ve explored the rumours that have been circulating to date, and why it’s important to wait until the official Autumn Budget announcement on 28 October before potentially revisiting your financial plan.

At the heart of this year’s budget sits a new Prime Minister, a new Chancellor, and a difficult economic backdrop.

While the growth forecast has been cut from 1.4% to 1.1%, UK borrowing reached £133 billion in 2025/26 whilst facing higher borrowing cost. These costs and overall global economic uncertainty has put a particular pressure on John Healey to raise revenue while meeting the fiscal rules, while Prime Minister Andy Burnham has voiced ambitions to reduce energy costs, support the social care system and tackle the rising cost of living.

What is currently being speculated?

Personal allowance hike

The current Personal Allowance for Income Tax has been frozen at £12,570 since 2021, with current legislation keeping this in place until April 2028 at the earliest. In September, Ecotricity founder and Labour donor Dale Vince proposed that the Personal Allowance be raised from £12,570 to £15,570, and Prime Minister Andy Burnham has mentioned on several occasions that he would be “looking at” raising the Personal Allowance. Should this prove to be the case on 28 October, this could mean that almost 97% of UK taxpayers will see a reduction in the Income Tax they are expected to pay.

Capital Gains Tax (CGT) increases

Should the personal allowance be raised, the resulting cost to the Treasury would need to be funded elsewhere. Dale Vince’s proposal suggested this could be achieved in part by aligning Capital Gains Tax (CGT) rates more closely with income tax rates and ending some interest payments on Bank of England reserves.

However, any move to increase CGT rates would be in the wake of several recent reforms, including a significant reduction in the annual CGT exemption from £12,300 to £6,000 in in April 2023, then from £6,000 to £3,000 in April 2024. While higher CGT rates may appear to offer a straightforward way to raise additional revenue, there is no guarantee they would generate the anticipated receipts. For example, investors may choose to hold on to assets for longer, delay disposals or seek alternative tax-efficient planning strategies, reducing the amount of tax collected in practice.

High Value Council Tax Surcharge threshold fall

The planned High Value Council Tax Surcharge – otherwise known as the Mansion Tax – will apply in England from April 2028 to homes valued at £2 million or more. However, there is speculation that this threshold could fall to £1.2 million, affecting a significantly greater number of properties.

State Pension triple lock

This tax year, the triple lock raised the full new State Pension by 4.8% to £241.30 a week, as confirmed by the Department for Work and Pensions. The Prime Minister proposed at the end of September that the State Pension triple lock should remain unchanged for the rest of this Parliament to support the UK’s “broken social care system,” before being adjusted from April 2030. Should this be confirmed, the State Pension would rise each year by the Consumer Price Index (CPI) inflation, or 2.5% – whichever is higher.

The value of a plan that can adapt

As ever, the build-up to the Autumn Budget is surrounded by speculation and differing opinions about what the Chancellor may announce.

It is important to consider what you hear and read carefully, rather than making decisions based on unconfirmed reports that could prove detrimental to your long-term plans.

For example, the run-up to last year’s budget saw speculation that the government planned to reduce the amount people could take from their pensions tax-free, prompting many individuals to withdraw those funds. However, the announcement never took place, leaving many of those people with a portion of their pension investments outside a tax-efficient wrapper.

Attivo’s Lifestyle Financial Planners are monitoring developments closely, ready to assess what any confirmed changes could mean and advise clients where adjustments to their strategies may be appropriate.

Having a clear, adaptable financial plan in place means that you can respond to confirmed changes in a considered way, without losing sight of your long-term goals.

If this is something you’d like to explore in more detail, arrange a free, no-obligation consultation with our team today.