The 2026 Autumn Budget will take place on Wednesday 28 October, where chancellor John Healey will set out the government’s plans for taxation and expenditure for the next year and beyond.
The budget will be the first fiscal test of Andy Burnham’s Labour government as worries grow that the chancellor will need to increase taxes to fund public services.
In a statement released by The Treasury, Healey said: “The Budget will [move] money and power out of Westminster, and into every postcode around Britain. It will be built on fiscal discipline. It will meet our fiscal rules. It’ll give businesses and families some of the stability they need to plan for the future.”
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One of the key challenges Healey faces is balancing the government’s books. The government’s fiscal rules prevent it from borrowing money to pay for day-to-day spending, and require debt to be falling as a share of the economy by 2030.
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Despite criticism that the self-imposed fiscal rules restrain the chancellor too much, Burnham has confirmed his government will stick by them. This was reiterated in his first major speech as chancellor on 7 September.
When is the Budget?
The Autumn Budget will take place on Wednesday 28 October at around 12:30pm - after Prime Minister’s Questions.
Most chancellors head out onto 10 Downing Street in London with the famous red briefcase, traditionally containing the important budget documents. And while the prime minister wants to spread power to the north, the budget is still likely to take place in Westminster.
The Office for Budget Responsibility (OBR), the UK’s fiscal watchdog, plays a role too, as the chancellor’s Budget decisions are partly informed by data and analysis provided by it.
The OBR publishes its economic and fiscal outlook just after the chancellor’s speech is finished, although last year its contents was accidentally leaked early.
After the Budget statement, MPs may be required to approve immediate changes to some taxes, such as alcohol and tobacco duties. A four-day Commons debate usually follows, after which MPs are asked to agree ‘ways and means’ resolutions to approve further tax proposals.
The last step is the Finance Bill, which gives permanent legal power to the measures introduced in the Budget. The Finance Bill often acts as a motion of confidence in the government – if it cannot pass key measures in the bill, it could be at risk of collapse.
What to expect from the 2026 Autumn Budget
In his first weeks as prime minister, Burnham announced a slew of new policies, including a £2 cap on bus fares, the removal of VAT from electricity bills, the ending of rough sleeping, and a plan to give mayors a share of income tax receipts.
We are likely to see how these will be funded in the Budget, alongside other new policies, but none of these have been officially announced.
Responding to questions about funding during his speech, he said: “Every chancellor would say ‘that’s for the Budget’, and I will set out my plans and the future route for the government for this country at that Budget.”
That being said, Healey did lay out the broad principles of his economic strategy in a major speech, emphasising that Britain needs to control its public spending and borrowing.
“There's nothing progressive about the government spending £1 in £10 on debt interest,” he said.
Healey also added that “fiscal discipline” is his first priority as chancellor, saying: “It underwrites every promise this government makes and the Prime Minister and I are in lockstep in our commitment to meeting the fiscal rules at the upcoming budget.”
Will Healey raise taxes?
Under the current Budget, the UK is projected to be in deficit until 2030. That means the chancellor has little to work with to help fund existing policies and introduce new ones while still sticking to the fiscal rules.
To find extra cash, he would have to either cut existing spending, or raise new taxes.
Burnham and Healey have both assured the country that they will stick to Labour’s 2024 manifesto commitment that income tax, national insurance and VAT will not be increased.
Though there are growing concerns that the 2026 Budget could still increase the tax burden on the wealthy.
Rob Morgan, chief investment analyst at Charles Stanley Direct, said: “Like his Labour government predecessor, Keir Starmer, Burnham has promised not to increase VAT, income tax or National Insurance.
“Indeed, some of the strongest signals so far suggest that any future tax reforms would focus more on wealth than earnings. Homeowners, business owners, investors and those planning to pass on wealth could therefore be among the groups most affected by Budget announcements.”
Morgan added that reforms to the current property taxation system, bringing capital gains tax closer in line to income tax rates, and even changes to inheritance tax may be on the cards.
Who is responsible for the Budget?
As chancellor, Healey has ultimate responsibility for the Budget and announces the main measures in a speech before parliament.
Other ministers that have a say over the Budget include Healey’s second-in-charge Emma Reynolds, chief secretary to the Treasury, as well as other junior Treasury ministers.
A full report is published by the Treasury alongside the Budget, providing further detail on the rationale and costing behind each measure.
What is the Budget?
The Budget is an opportunity for the chancellor to set out the government’s plans for spending, taxation and the economy.
It typically takes place once a year, but previous chancellors have sometimes deviated from this schedule with two events.
When chancellors set the Budget, they aim to balance the nation’s books and ideally give themselves some financial leeway – a sort of margin for error known as ‘fiscal headroom’. This is essentially the amount by which they can increase spending or cut taxes without breaking their fiscal rules.
In the 2025 Budget, then-chancellor Rachel Reeves expanded her fiscal headroom to around £22 billion, but analysis by the Resolution Foundation says this has likely since decreased to around £10 billion.
Economic forecasts are also published at each fiscal event, giving a sense of what we can expect over the next five years.
