Budget 2026 - two week countdown

We’ll be expected to provide a response to trade press on the same day, and meet with the Department for Business, Innovation, Science & Trade the following day. So, let us know now if you have any thoughts on any of the speculated measure.

These include:

• Business rates – Further relief for smaller businesses and high-street premises is possible, potentially funded by shifting more of the burden  towards large distribution warehouses and online retailers.  
• Capital Gains Tax – CGT is prone to increase. A rise (or reduction in the tax-free exempt amount) might be accompanied by strengthened Business Asset Disposal Relief though, to protect entrepreneurs.
• Employer National Insurance – reversal of the Budget 2024 reforms is unlikely. We and other business groups have called for Government to raise the £5,000 employer NIC threshold to alleviate some of the damage. 
• Capital allowances and investment incentives – there is potential for existing capital allowances to be strengthened, but major new incentives are unlikely. 
• Business energy costs – Unlikely, due to the British Industrial Competitiveness Scheme now being open for the biggest energy users in certain sectors (but print mostly ineligible). 
• Corporation Tax – an increase in the main rate looks unlikely, given the commitment to cap at 25%.