Budget 2026: The announcements that matter

Key changes and what they mean for you

For corporates

Budget 2026 announced a number of key measures that will affect businesses across a range of sectors, with implications for their tax liabilities, operating costs and compliance obligations. Below, we summarise the principal announcements.

Extra 3% on banks surcharge: Banks will pay an extra 3% on the banks surcharge, increasing the surcharge from 3% to 6%. This will increase the burden on banks although considered a smaller tax rise than might have been expected. This is expected to take effect from January 2027 and last 15 months.

Increased taxes on gambling: From 1 April 2027, taxes on gambling machines will rise from 20% to 25% for high stakes machines.

Online marketplaces: From 1 October 2027, this measure will extend VAT online marketplace liability rules, requiring online marketplaces, such as Amazon, eBay and Temu, to collect and remit VAT on business-to-consumer sales by UK sellers through their platforms.

Trading allowance increased: The government has announced an increase to the trading allowance from 6 April 2027, raising the amount people can earn from a new venture tax-free from £1,000 to £3,000. This is intended to encourage and support UK businesses to continue investments in the UK.

Alcohol Duty relief: From 1 February 2027, the government will increase the generosity of Small Producer Relief by aligning the discount taper for alcoholic products between 1.3% and 3.4% with the more generous taper available to beer above 3.4%. This is intended to provide relief and support small brewers and cider makers.

Fuel duty: The 5p fuel duty cut has been extended until July 2027 and the higher mileage rate will be increased from 25p to 35p per mile. In addition, the Heavy Goods Vehicle road tax holiday will be extended to 1 July 2027.

Enterprise Management Incentives 2 (EMI2) limit increased: From 6 April 2027, the government will increase the limit on the amount of Company Share Option Plan (CSOP) options an individual can be granted from £60,000 to £120,000. This is intended to make it more attractive for companies to grant employees and full-time directors the option to buy shares at a fixed market price.

Business rates cut: The government intends to fund an extra 20% reduction of business rates for pubs, music venues and social clubs from 1 April 2027. Business rates are also expected to be cut to zero for 70,000 businesses by raising the threshold for those who have to pay it from premises with a rateable value of £12,000 to £18,000. Adult games centres and vape shops will not qualify for the relief.

Wage increases: From 1 April 2027, the National Living Wage will increase by 3.9% to £13.21 per hour; the National Minimum Wage will increase by 3.9% to £11.27 per hour for 18 to 20-year-olds and by 3.9% to £8.31 per hour for 16 to 17-year-olds and eligible apprentices; and the accommodation offset will rise by 3.9% to £11.53 per day.

Import Tariffs: As trailed prior to the Budget, the Chancellor announced that he will suspend import tariffs on:

• 135 food products (including some fruits, juices, pasta, couscous and tuna) from 21 June 2026 until 31 December 2026;
• 101 food products (including vegetables, sauces and chocolate) and kerosene hearing oil from 26 November 2026 to 31 December 2027; and
• fertiliser from 26 November 2026 until 31 December 2027.