Autumn Budget 2026: A Summary of the Main Announcements

The Autumn Budget 2026 has arrived, with Chancellor John Healey setting out the Government’s latest economic and financial priorities in the House of Commons on Wednesday 28 October. As businesses and individuals continue to navigate rising costs and economic uncertainty, there has been considerable interest in what the Budget could mean for the UK’s self-employed workforce. Ahead of the announcement, speculation focused on potential tax reforms, changes to allowances and measures designed to ease financial pressures on working households.

There were already some encouraging developments for self-employed workers before the Chancellor’s speech. Prime Minister Andy Burnham’s Government announced plans to extend parental pay to eligible self-employed fathers and partners from April 2029, alongside improvements to tax-free mileage allowances for people who drive for work. With further announcements now unveiled, Stonebridge takes a closer look at the key measures from the Autumn Budget 2026, exploring what they mean for self-employed individuals, how they could affect earnings and expenses, and what workers should be aware of in the months ahead.

Key Announcements: Businesses, Contractors and Employers

• National Minimum Wage: The National Living Wage for workers aged 21 and over is expected to increase from £12.71 to around £13.20 per hour from April 2027, with the rate for workers aged 18–20 also expected to rise. Businesses should factor potential increases into their workforce costs and payroll planning.

• Mileage Rates: The 55p per mile rate for the first 10,000 business miles is being made permanent, with the rate for mileage above 10,000 increasing from 25p to 35p per mile.

• Support for Self-Employed Parents: Eligible self-employed fathers, partners and adopters are set to gain access to parental pay from April 2029, subject to eligibility criteria.

• Reducing Business Administration: The Government has announced plans to simplify reporting requirements and reduce unnecessary regulatory paperwork, aiming to save businesses time and money.

• Cost of Living Measures: Changes include removing import tariffs on more than 100 products, with the aim of reducing costs for households and businesses.

• Small Business Rates Relief: Changes to business rates and available reliefs may affect eligible businesses and their operating costs.

• Gender Pay Gap Reporting: Employers should be aware of developments affecting pay transparency, reporting requirements and workplace equality.

• Tax on Limited Companies: Company directors and contractors operating through limited companies should keep up to date with changes to company taxation and how they take income from their businesses.

• Data Centres and Infrastructure: Developments in data centre investment could create opportunities across construction, engineering and specialist contracting.

Additional Announcements

Energy and Cost of Living

• Household Energy Support: A £100 payment has been announced for around 20 million households in council tax bands A–D in England, with equivalent funding for Scotland, Wales and Northern Ireland.

• Gas Standing Charges: The Government plans to remove standing charges from household gas bills, transferring these costs to the price charged for each unit of gas used. Ofgem has been asked to deliver the change in 2027, or as soon as possible afterwards. The effect on individual bills will depend on consumption, so this will not mean lower bills for every household.

• Electricity VAT: The temporary VAT reduction on electricity bills is to continue until July 2027.

• Fuel Duty: The freeze on fuel duty is also being extended until July 2027. For construction businesses and subcontractors travelling between sites, this delays a duty increase, although pump prices will still be affected by wider fuel costs.

Personal Finances

• Cash ISA: The government has reversed the planned reduction to £12,000 for under-65s from April 2027. The overall annual ISA allowance remains £20,000 across your ISAs combined.

• Higher Tax on Savings Interest: From 6 April 2027, tax rates on taxable savings income will be 24% for basic-rate, 44% for higher-rate and 49% for additional-rate taxpayers. Interest sheltered within an ISA remains tax-free.

• Savings Allowances: The Personal Savings Allowance stays at £1,000 of interest annually for basic-rate taxpayers and £500 for higher-rate taxpayers. The starting-rate savings band remains £5,000 for eligible people on lower incomes.

• Possible Incentive for First-Time Investors: The government will explore a new incentive for people opening a stocks and shares ISA for the first time. Details are still being developed with industry.

• Children’s Savings Limits Unchanged: Junior ISA and Child Trust Fund annual allowances remain £9,000 for 2027/28.

Benefits and Pensions

• Tax Protection for Lower-Income Pensioners: A new tax-free allowance is intended to prevent pensioners whose total income does not exceed the full new State Pension from paying income tax.

• Carer’s Allowance Reform: The Government plans to replace the earnings “cliff edge” with a taper. Instead of losing their entire allowance when earnings exceed the permitted limit, carers would see support reduced by £1 for each additional £1 earned above it. This could make it easier for people to balance paid work with unpaid caring responsibilities.

Other Business Tax Measures

• Bank Surcharge: The surcharge on bank profits is set to increase from 3% to 6% for 15 months from January 2027. This is a sector-specific measure rather than a general increase in Corporation Tax.

• Gambling Machines: An increase from 20% to 25% in the duty applying to gambling machine (higher stakes).

• Online Marketplace VAT: Platforms such as Amazon, eBay and Temu will face stronger requirements intended to tackle VAT avoidance by sellers using their services.

Housing

• Social and Affordable Housing: An additional £1 billion has been announced for social and affordable housing in England, bringing funding for the ten-year programme to more than £40 billion. This could support future demand for construction services as funded schemes move through planning, procurement and delivery.

• Rough Sleeping Support: A further £432 million will support the Rough Sleeping Programme in 2027/28 and 2028/29, building on the £442 million already announced. This supports the Government’s ambition to offer people sleeping rough in England a route off the streets before Christmas and maintain help beyond this winter. The funding includes support services and should not be treated as a dedicated housebuilding budget.

Devolution and Regional Investment

• Locally Retained Business Rates: The Government plans for all business rates to be retained locally by the end of the decade, with mayors retaining a 20% share from 2027.

• Income Tax Receipts: Mayors are also set to receive a share of income tax receipts from April 2028.

• Local Investment Funding: £285 million has been announced for 2027/28 to support mayoral growth funds and areas moving towards mayoral devolution. This is intended to give local leaders greater flexibility to invest in priorities such as housing, transport and town centre regeneration.

• Borrowing for Larger Projects: The Government will work with mayors to design a £1.5 billion borrowing facility, available from 2028, to help finance investment.

• Potential Construction Opportunities: Greater local control over investment could influence future housing, regeneration and infrastructure projects. Contractors should monitor local authority and mayoral programmes, while recognising that individual schemes will still depend on approvals, procurement and delivery timescales.

Further Announcements

• Warm Homes Loans: The Government has launched a Warm Homes Loan Scheme offering low-interest and interest-free finance for eligible household installations, including solar panels, batteries and heat pumps. Available across the UK through participating lenders, the scheme is subject to affordability, credit and eligibility checks. It could support demand for installation work and associated property improvements. Government guidance requires MCS-certified installers for supported installations, except heat network connections.

• AI Investment and Business Adoption: The announced AI investment package includes an additional £120 million for the AI Security Institute and £100 million for an AI Biosecurity Lab. Separate funding will support local partnerships bringing together businesses, councils and education providers. Beyond the data centre opportunities covered earlier, these partnerships could help businesses explore practical uses of AI and develop workforce skills.

• Funding to Tackle Misogyny: A new £15 million fund will support initiatives to tackle misogyny over three years, potentially including workplace training, mentoring and communications campaigns. This is relevant to wider efforts to create respectful workplaces and support women across the construction industry. The announcement itself does not introduce a new employer reporting requirement.

At Stonebridge Contracting, we’ll continue to monitor developments and keep our clients informed about changes relevant to their businesses and workforce arrangements.