Autumn Budget 2026 – What it Means For You

The chancellor has delivered the Autumn Budget, announcing measures that will affect the cost of employing staff, running business premises and managing personal finances.

For small and medium-sized enterprises (SMEs) and family-run firms, there is some welcome support alongside further cost pressures. Below, we explain the relevant announcements and what they could mean for your business.

Higher minimum wages from April 2027

The legal minimum wage will increase by 3.9% from April 2027. This means businesses employing staff on minimum wage will need to budget for higher pay from next spring.

The impact may also extend to employees earning just above the minimum, particularly where you want to maintain differences in pay between roles with different responsibilities. So, we recommend that you review your payroll forecasts ahead of April, allowing for any associated increases in employer National Insurance and pension contributions.

Business rates relief for qualifying premises

From April 2027, the threshold for full Small Business Rate Relief will increase from £12,000 to £18,000 for qualifying retail, hospitality and leisure properties in England. This could provide a meaningful saving for eligible independent shops, cafés and other businesses operating from smaller premises.

Importantly, the announcement does not mean every business property with a rateable value below £18,000 will automatically qualify. Check your property’s rateable value and whether your business meets the relief conditions before building a saving into your forecast.

Changes to VAT collection for online sellers

Online marketplaces will become responsible for collecting VAT on qualifying sales made by UK businesses through their platforms from October 2027.

The rules will cover UK VAT-registered businesses and other UK businesses meeting an annual sales threshold of £90,000 per platform. There are exclusions, including personal sales, second-hand goods and business-to-business transactions.

If you sell through platforms such as Amazon or eBay, this could change how VAT is collected and how marketplace payments appear in your accounts.

Review the arrangements with us as implementation approaches, particularly if you sell through several platforms or combine online sales with a physical shop.

Fuel duty freeze and higher mileage allowances

The existing 5p fuel duty cut and freeze will continue until 1 July 2027. This avoids a planned duty increase, although pump prices can still change with wider fuel costs.

The 55p tax-free mileage rate for the first 10,000 qualifying business miles in a car or van is also being made permanent. From 6 April 2027, the rate above 10,000 miles will increase from 25p to 35p.

If your business reimburses employees who use their own vehicles, you should review your mileage policies and keep accurate records of business journeys.

Targeted help with business electricity costs

The British Industrial Competitiveness Scheme will start in April 2027, providing eligible manufacturers with electricity discounts of around 20–25%, including support for costs incurred in 2026/27. Around 10,000 energy-intensive manufacturing businesses are expected to benefit.

For a qualifying family manufacturing firm, this could reduce a significant overhead. However, it is targeted support, so businesses should check the eligibility requirements before assuming their electricity costs will fall. Speak to us if you’d like help understanding whether your business could qualify.

Import tariff cuts on selected products

The government has announced tariff suspensions covering more than 100 food products, alongside cuts affecting kerosene and fertilisers. These changes may be relevant to food retailers, hospitality businesses and family farms.

Any saving will depend on the products you buy, the tariffs currently applying and whether suppliers pass reductions on. If your business purchases affected goods, ask suppliers how the changes will be reflected in future prices.

Further tax increases on savings and rental income

From April 2027, income tax rates on savings and property income will rise by a further two percentage points. This comes on top of the two-percentage-point increase announced in the 2025 Budget.

This is relevant to business owners who hold personal savings or receive rental income alongside their trading income. Family members who own premises personally and rent them to the business should also review their position.

We recommend updating your personal tax forecast alongside your business forecast, so you understand how much income will remain available after tax.

Cash ISA allowance stays at £20,000

Plans to reduce the cash ISA allowance to £12,000 for under-65s have been scrapped. The annual cash ISA limit will remain at £20,000.

For owners building personal savings outside their business, this preserves an option for receiving savings interest tax-free. It is worth considering alongside the higher tax rates on savings income when reviewing your personal finances.

Parental pay extended to more self-employed parents

The Budget also announced that parental pay will be extended to self-employed fathers and partners.

For sole traders and family businesses, financial support around the arrival of a child could make taking time away from work more manageable. But check the final eligibility rules and implementation timetable before relying on the payment in your future plans.

What should you do next?

The effect of this Budget will depend on how your business operates. Employers should prepare for higher wage costs, while qualifying high street firms may benefit from business rates relief.

Start by updating your cash flow forecast for April 2027 onwards. Review any reliefs relevant to your premises and consider how the personal tax changes affect the money your family has available.

How we can help

At Navigate, we support family-run and owner-managed businesses, so we can help you assess which announcements apply to you and update your forecasts, giving you a clearer picture before the changes take effect.

Please call our team on 01709 589 439 to discuss what the Budget means for your business