The Autumn Budget 2026, delivered by Chancellor John Healey on 28 October 2026, included measures for small businesses, including business rates support, higher minimum wage rates and a proposed tax relief for high-growth founders. The measures were summarised for small businesses on 3 November 2026, with most changes not taking effect until April 2027 or later, giving owners time to plan rather than react.
There were no rises to the headline rates of income tax or National Insurance, and plenty of smaller, targeted measures instead. Most do not take effect until April 2027 or later, which is useful for small businesses that need time to update payroll, pricing and cash flow forecasts. The Budget at a glance includes a minimum wage rise of 3.9 percent from 1 April 2027, to 13.21 pounds an hour for workers aged 21 and over, and business rates support for firms facing higher bills.
Budget
The minimum wage rise will affect employers who pay staff at or near the minimum, including shops, cafes, care providers and hospitality businesses. From 1 April 2027, the National Living Wage for workers aged 21 and over rises from 12.71 pounds to 13.21 pounds an hour. The rate for 18 to 20-year-olds rises to 11.27 pounds, and the rate for 16 to 17-year-olds and apprentices rises to 8.31 pounds. Employers will need to budget for higher wage costs, while workers will see a rise in take-home pay.
The Budget also announced a proposed tax relief for high-growth founders, with a consultation inviting written feedback by 30 November 2026. The relief is intended to encourage founders to start and grow businesses in the UK, by reducing the tax burden when they sell shares or take investment. Some measures still require consultation or legislation, so the detail may change before they come into force.
For small businesses, the advice from accountants is to review the Budget measures that apply to them, update cash flow forecasts, check payroll and rates bills, and seek advice if needed. The Budget document, published by HM Treasury, sets out the full list of policy decisions, and the Low Pay Commission’s recommendations on minimum wage rates were accepted in full. Small business owners said the clarity on rates and wages, and the time to prepare, was welcome after a period of uncertainty.
Source: DF Accounting
