The Chancellor, John Healey, delivered the Budget on 28 October 2026. The rates of income tax, National Insurance and VAT stay the same. Below are the changes most likely to affect Okehampton businesses, with the dates they start.
High street and business rates
- From April 2027, Small Business Rate Relief for retail, hospitality and leisure properties in England gets more generous. Full relief applies up to a rateable value of £18,000 (up from £12,000), with tapered relief up to £21,000 (up from £15,000). Around 70,000 more businesses will pay no business rates at all. You can check your property’s rateable value on GOV.UK.
- Other retail, hospitality and leisure properties see rates frozen for two years, so none faces an above-inflation increase.
- Pubs, music venues and social clubs get an extra 20% reduction.
- From October 2027, online marketplaces must collect VAT for UK sellers making more than £90,000 of sales through them. The government will put the money raised back into high street rates relief.
Running costs
- The National Living Wage and National Minimum Wage rise by 3.9%.
- The 55p tax-free mileage rate for the first 10,000 business miles is now permanent. Above 10,000 miles, the rate rises from 25p to 35p from April 2027.
- The 5p fuel duty cut and freeze continues to 1 July 2027.
Investing and planning ahead
- From 1 January 2027, the first-year allowance on main-rate equipment rises from 40% to 50%. From April 2027, the yearly writing-down allowance falls to 12%.
- From April 2027, the lifetime limit for Business Asset Disposal Relief halves from £1 million to £500,000.
- The Corporation Tax main rate stays capped at 25%.
- From April 2029, payments on account for self-assessment become smaller and more regular, and VAT e-invoicing becomes a requirement.
For households
- Households in council tax bands A to D in England receive a £100 Household Energy Payment from January 2027.
- The VAT cut on household electricity runs until July 2027.
- The £2 bus fare cap stays in place through 2027.
Every business is different, so members should check with their accountant or adviser how these changes apply to them. The full Budget 2026 report is on GOV.UK.
