On 28 October, Chancellor John Healey will deliver the first Budget under new Prime Minister, Andy Burnham. We don't yet have the full picture. The government hasn't published its plans and plenty of what's being discussed is still speculation. We walk through what's previously been announced, as well as what changes are rumoured to appear.

What's previously been confirmed

Corporation Tax has a ceiling.

The government confirmed that the main rate of Corporation Tax won't go above 25% for the remainder of this Parliament. If you're running a limited company and weighing up whether to invest in new equipment, take on staff, or expand, this gives you something solid to plan around.

Household electricity gets cheaper - but not for businesses.

VAT is set to be removed from domestic electricity bills from 1 October 2026, which is expected to save the average household around £45 a year. This relief applies to domestic bills only. If you run your business from commercial premises, VAT at 20% still applies to your electricity.

What’s rumoured for this Autumn announcement

Capital Gains Tax

CGT rates were last increased in October 2024, when the main rate on most assets rose to 24%. There's some commentary suggesting the Chancellor may look to bring CGT rates closer in line with Income Tax rates, although there is no current policy announced to do so.

^{The Times reported ministers were considering CGT increases:
‍https://www.thetimes.com/uk/politics/article/andy-burnham-capital-gains-tax-rise-income-personal-allowance-l2mv0l2b8}

^{Reuters examined CGT reform as one of the principal options available to fund an increase in other areas:
‍https://www.reuters.com/world/uk/options-uk-finance-minister-healey-tax-wealth-octobers-budget-2026-09-07}

Property taxes may be targeted

Council tax and Stamp Duty reform have been identified as potential sources of additional revenue in some pre-budget speculation. There are several different versions of this rumour:

-  reforming the existing council-tax bands;
-  changing or replacing Stamp Duty;
-  introducing a tax based more directly on the value of a property; or
-  combining elements of the existing property taxes into a broader property-value tax.

Property taxation seems to be a genuine area of policy discussion, but there is no certainty that a replacement of Stamp Duty/council tax is coming in this budget announcement.

^{Reuters discuss property taxes in their pre-budget analysis:
https://www.reuters.com/world/uk/options-uk-finance-minister-healey-tax-wealth-octobers-budget-2026-09-07}

^{Chartered Institute of Taxation discuss rumours on property taxes:
https://www.tax.org.uk/budget-2026-early-indications-and-potential-tax-policy-changes}

What to consider before 28 October

Every year, speculation tends to build ahead of the Budget, influencing some people to act on hearsay long before anything is confirmed, but there's no telling whether those predictions will come true. Our advice remains consistent: stay level-headed, keep an eye on developments as they're confirmed, and speak to your adviser if you need tailored guidance.

The future is impossible to forecast with certainty, so rather than trying to second-guess what might happen, it generally makes sense to base your financial decisions on the rules and system as they stand today, but do seek financial advice if you have any concerns.

If you have any queries on the points raised above that you’d like to discuss with us further, please don’t hesitate to contact us.

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_{This is published for the information of clients. It provides only an overview of information available at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore, no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this publication can be accepted by the authors or the firm.}