UK Chancellor John Healey faces growing pressure over tax and spending. He will deliver his first Autumn Budget on 28 October 2026.
The Treasury needs extra revenue but has ruled out raising major taxes like Income Tax and VAT. This puts Capital Gains Tax and other targeted areas under closer watch. No tax rises are confirmed yet, but businesses and investors should prepare now.
The key question is where the Treasury can find extra money without breaking its major tax promises. On 7 September, Healey declined to comment on possible tax changes. He said responding to individual Budget rumours would not help before the announcement.
This uncertainty matters for businesses, landlords, investors, and anyone planning big financial decisions. No tax rises are confirmed. But the government’s limited options mean people are watching targeted tax changes closely.
Why Is the Chancellor Under Pressure?
The public finances leave little room for easy choices.
UK public sector net debt hit £2.98 trillion by the end of July 2026. That equals 94.1% of GDP. Government borrowing for the year to July also came in £2.3 billion higher than the Office for Budget Responsibility had forecast.
At the same time, Healey has repeated his party’s manifesto promises. These promises cover major taxes, including Income Tax, VAT, Corporation Tax, and National Insurance. That makes big increases to these taxes politically hard to justify.
This leaves the Treasury searching for narrower ways to raise money while keeping confidence in the public finances steady.
Could Capital Gains Tax Come Under Pressure?
Capital Gains Tax is one area drawing attention before Budget Day.
Individuals currently pay CGT at 18% or 24%, depending on their taxable income. The annual tax-free allowance sits at just £3,000 for 2026/27.
One idea under discussion is raising CGT rates closer to Income Tax rates. But the government hasn’t announced this change, and the Chancellor hasn’t confirmed that CGT will rise.
This distinction matters. Business owners weighing a company sale, and investors planning to sell assets, shouldn’t rush decisions based only on Budget rumours. Still, reviewing the possible tax impact before 28 October could help you avoid getting caught off guard.
Businesses Are Warning Against Another Cost Increase
Pressure is also building from the business community.
The British Chambers of Commerce warned on 6 September that policy-driven costs for a typical small or medium-sized business have grown by more than 70% over the past decade. Just 17% of SMEs in its latest survey planned to increase investment this quarter.
The BCC is asking the Chancellor to cut costs instead of adding more taxes on businesses.
This puts Healey in a tough spot. The government needs to protect the public finances, but tax changes that raise business costs could weaken investment and confidence.
What Should You Do Before 28 October?
For now, businesses and individuals should focus on preparing, not guessing.
Company directors can review their cash flow, planned dividends, and future investment plans. Investors and business owners thinking about selling assets can check their current CGT exposure. Landlords can review how existing and already announced tax changes might affect their long-term position.
Most importantly, don’t restructure a business, sell an asset, or withdraw money from a pension just because of Budget rumours. The final rules may look different from what’s being speculated now.
How Lanop Can Help You Prepare
The October Budget could change the tax position of businesses, investors, and property owners. Waiting until after the announcement may leave you less time to understand the impact.
Lanop Business & Tax Advisors can review your current tax position, model different Budget scenarios, and flag areas that may need attention before 28 October. This lets you plan to use today’s rules while staying ready for whatever the Chancellor announces next.
Contact Lanop today to review your position ahead of the Autumn Budget.
