What's in the Budget for my company?
The 2026 Budget will change what companies pay in tax, wages, rates and energy. Here are the headline measures for business. For the ones that touch your own sector, ask Frontbench for a free briefing.
The headlines
No rise in the headline taxes
Income tax, National Insurance and VAT headline rates stay where they are. Corporation Tax remains capped at 25% and full expensing is kept.
Capital allowances reshaped
The main rate first year allowance rises from 40% to 50% from 1 January 2027. The main rate writing down allowance falls to 12% from April 2027.
A higher wage bill
The National Living Wage rises 3.9% to £13.21 an hour on 1 April 2027. The rate for 18 to 20 year olds rises to £11.27.
Business rates on the high street
In England, around 70,000 more retail, hospitality and leisure businesses will pay no business rates from April 2027, as Small Business Rates Relief thresholds rise to £18,000 for full relief and £21,000 for tapered relief. Other qualifying properties in those sectors get a real terms freeze for two years.
Cheaper power for industry
Through the British Industrial Competitiveness Scheme, 10,000 energy intensive manufacturers get a 20 to 25% electricity discount from April 2027, with a back payment for 2026 to 2027.
A new deal for founders
Founders' Relief brings a 10% Capital Gains Tax rate on up to £10 million of lifetime gains for qualifying founders of high growth companies from 6 April 2027. The Company Share Option Plan, renamed EMI2, doubles its individual option limit to £120,000.
Lower running costs
The 5p fuel duty cut is extended to 1 July 2027, and the 55p tax free mileage rate for the first 10,000 business miles becomes permanent. Tariff suspensions on 269 goods are extended, with a new window to request more open from 11 November 2026 to 3 February 2027.
Banks pay more for now
The Bank Corporation Tax Surcharge rises from 3% to 6% for 15 months, from 1 January 2027 to 31 March 2028, to help fund household energy support.
Figures from HM Treasury, Budget 2026, published 28 October 2026.
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