Autumn Budget 2026: the key announcements and dates

The government published the full Budget 2026 document alongside supporting tax documents and the Office for Budget Responsibility’s latest economic and fiscal forecasts.

Some measures take effect immediately or have already been implemented. Others are scheduled for future tax years or require legislation through the Finance Bill 2026-27.

The economic outlook

The Office for Budget Responsibility reduced its forecast for UK GDP growth in 2027 from 1.6% to 1.0%. Its inflation forecast for the same year increased from 2.0% to 3.4%.

The OBR forecasts inflation falling to 2% from 2028, based on an assumption that energy prices decline. GDP growth is forecast to average 1.7% a year between 2028 and 2031.

Government borrowing is forecast to fall from £134 billion in 2025/26 to £68 billion in 2031/32. However, borrowing between 2026/27 and 2030/31 is expected to be approximately £13 billion a year higher, on average, than forecast in March 2026.

The OBR assessed that the government is meeting both of its fiscal rules. The current budget is forecast to be in surplus by £15 billion in 2029/30, while public sector net financial liabilities are forecast to be falling in the same year.

Income Tax, National Insurance and VAT

The Budget does not increase the headline rates of Income Tax, National Insurance contributions or VAT.

The Personal Allowance will remain at £12,570 in 2027/28. The basic-rate band will remain £37,700, with the higher-rate threshold continuing at £50,270 when the Personal Allowance is included.

Most National Insurance thresholds will remain at their 2026/27 levels until the 2030/31 tax year. The employee Primary Threshold will remain £242 a week and the employer Secondary Threshold will remain £96 a week in 2027/28. The Employment Allowance will remain £10,500 a year.

The government’s official rates and allowances tables provide the full figures for 2027/28.

From April 2027, the Income Tax rates applying to property and savings income will be 24% at the basic rate, 44% at the higher rate and 49% at the additional rate. The rates applying to employment income will remain 20%, 40% and 45%.

National Living Wage and National Minimum Wage

All statutory minimum wage rates will increase by 3.9% on 1 April 2027.

The new hourly rates will be:

£13.21 for workers aged 21 and over £11.27 for workers aged 18 to 20 £8.31 for workers under 18 £8.31 for eligible apprentices

The accommodation offset will increase to £11.53 a day. The new rates are confirmed in the government’s National Minimum Wage guidance.

Business mileage

The approved mileage rate for cars and vans increased retrospectively from 45p to 55p for the first 10,000 business miles from 6 April 2026.

The rate for business mileage above 10,000 miles remains 25p for 2026/27. It will increase to 35p from 6 April 2027.

The rates determine how much an employer can pay for business travel in an employee’s own vehicle without the payment being subject to Income Tax. They also affect the tax relief available where an employer pays less than the approved amount.

Payrolling benefits in kind

Mandatory payrolling of benefits in kind will be introduced in phases.

From 6 April 2027, employers will have to report Income Tax and Class 1A National Insurance through payroll for:

company cars and car fuel vans and van fuel employer-provided medical benefits

Most remaining benefits in kind will move to mandatory payrolling from April 2028. The implementation dates for employer-provided accommodation and employment-related loans will be confirmed separately.

HMRC has published interim guidance on mandatory payrolling.

VAT and temporary medical staffing

The government intends to amend Group 7 of Schedule 9 to the VAT Act 1994, which contains the exemption for the provision of a deputy for a registered medical practitioner.

The change is scheduled to take effect from 1 May 2027 and will be introduced through the Finance Bill 2026-27.

The announcement follows the First-tier Tribunal decision in Isle of Wight NHS Trust and others, which found that the exemption applied to supplies of locum doctors, including those provided by employment businesses. HMRC subsequently confirmed that it would not appeal the decision and published an updated brief on the VAT treatment of temporary medical staff.

The detailed wording and scope of the new treatment will be determined by the legislation.

Tax administration and HMRC compliance

From 1 April 2029, VAT invoices will have to be issued in a specified electronic format. The government plans to publish full policy and technical details by April 2028.

Businesses will also have to establish direct debit instructions for VAT liabilities from 1 April 2029 and PAYE return liabilities from 6 April 2029. Other payment methods will remain available before a specified payment cut-off. The direct debit will be used to collect balances that remain unpaid after that point.

The government will recruit an additional 670 HMRC compliance officers by 2029/30. This is in addition to the 5,500 extra compliance officers announced previously.

Energy, fuel duty and household measures

The temporary 5p reduction in fuel duty and the wider fuel duty freeze will continue until 1 July 2027. On that date, the government plans to reverse the 5p cut and increase rates in line with RPI inflation.

A £100 Household Energy Payment will be made from January 2027 to households in England in council tax bands A to D. The devolved governments will receive corresponding funding through the Barnett formula.

The government has also asked Ofgem to remove household gas standing charges by the end of 2027, or as soon as possible afterwards. The detailed arrangements have not yet been finalised.

Key implementation dates

• 1 January 2027: Bank Corporation Tax Surcharge increases temporarily from 3% to 6%.
• 1 April 2027: New National Living Wage and National Minimum Wage rates take effect.
• 6 April 2027: Higher mileage rate above 10,000 miles and the first phase of mandatory benefits-in-kind payrolling begin.
• 1 May 2027: Proposed change to the VAT treatment of medical deputies takes effect, subject to legislation.
• 1 July 2027: Planned end of the temporary fuel duty cut and freeze.
• April 2028: Mandatory payrolling extends to most remaining benefits in kind.
• 1 April 2029: Mandatory electronic VAT invoicing and VAT direct debit arrangements begin.
• 6 April 2029: PAYE direct debit arrangements begin.

The Budget does not announce a new umbrella company or off-payroll working measure. Existing legislation and previously announced reforms in these areas remain separate from the Budget announcements.