This year’s Autumn Budget arrived following a chaotic build-up with frequent leaks, press briefings, and growing public criticism meant expectations were mixed at best, and confidence in the process was dented long before the Chancellor rose to speak.
Yet despite the noise, the Autumn Budget delivered more stability and positivity with the real-term spending power of taxpayers and business owners improving rather than the sweeping reforms to Inheritance Tax and employers’ National Insurance we saw last year.
The government confirmed that property savings and dividend rates will increase by 2% from April 2027, and dividend rates will increase by 2% from April 2026 for basic and higher rate taxpayers. While some will welcome the clarity, these changes will have a financial impact for investors who rely on such income sources. This means reduced earnings and, for the property sector, higher rents passed on from landlords absorbing increased tax burdens.
Keeping the £20,000 ISA allowance provides stability for savers. However, the requirement that £8,000 be held in investments rather than cash is a bold move that encourages long-term investing and supports the wider economy. It’s an example of the Treasury trying to nudge behaviours without removing options and helping to strengthen household financial resilience.
A major change that will be felt in the long term is the decision to cap National Insurance relief on salary sacrifice pension contributions at £2,000 per year from April 2029.
This means contributions above that level will attract National Insurance Contributions (NICs) from both employees and employers which will reduce employee take-home pay, squeeze employer profits and weaken the incentive for higher earners to save for retirement. Employers should begin reviewing their cost models now, rather than waiting until 2029.
For SMEs, the outlook is generally positive and provides clearer support around growth incentives, particularly additional capital allowances, enhancements to Enterprise Management Incentives, Enterprise Investment Scheme, and Venture Capital Trust schemes. This provides reassurance that private investment remains a central pillar of UK growth strategy giving business owners continuity - something they have been calling out for.
While the additional 40% First-Year Allowance (FYA) benefits many businesses, it’s important not to overlook the reduction to Writing Down Allowances (WDA).
The FYA will help in year one, but beyond that not all businesses will see long-term net gains, so planning early will help make a difference to long-term tax positioning.
Overall, the Autumn Budget avoided the most damaging rumours and delivered a more stable environment than expected for mainstream taxpayers and owner-managed businesses.
There are still areas to monitor though, particularly around pensions, allowances, and longer-term planning, but the general direction of travel is supportive.
The key now is preparation. Whether you are a business owner, investor, or employee, adapting early will help you make the most of the opportunities the Autumn Budget offered.
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Download our summary covering all of the announcements and changes in greater detail broken down by personal tax and pensions, employment, business, and more.
