UK Autumn Budget 2026: Healey Rules Out Capital Gains Tax Rise as Bank Tax Raid Tops Revenue Plans

Chancellor John Healey will deliver the UK Autumn Budget on Wednesday 28 October 2026. Reports say he has ruled out a rise in capital gains tax (CGT), and that a tax raid on banks will be the Budget’s biggest revenue raiser.

The Times reported that Healey rejected calls to raise CGT after warnings that higher rates could cost the Treasury money if wealthy people left Britain or delayed selling assets. CGT is charged at 24 per cent for higher-rate taxpayers on profits from second homes, shares and other assets, compared with up to 45 per cent for income tax.

Banks are instead expected to pay more. Britain’s four largest lenders, HSBC, NatWest, Barclays and Lloyds, made £200 billion in pre-tax profits over the past five years. Reports say a rise in the bank corporation tax surcharge, from 3 per cent to 8 per cent, is under consideration.

Healey has described his plan as a ‘steady as she goes’ Budget. The Times reports that he will cut the government’s fiscal headroom, the buffer against future shocks, from £23 billion to around £15 billion.

The money raised is expected to fund targeted, temporary cost-of-living help. Reports say the package could be worth more than £1 billion for lower-income households, possibly including an extra £100 Warm Home Discount. VAT on electricity bills was already removed on 1 October, and manufacturers are also expected to see lower energy costs.

Businesses are also in line for relief. A 20 per cent cut in business rates for qualifying hospitality venues, including pubs and music venues, has already been announced from April 2027. Online marketplaces could also be made to collect VAT owed by sellers on their platforms, raising up to £1 billion to support lower rates for high-street shops.

On Friday, Healey also announced a red-tape-cut package worth around £800 million a year, including simpler reporting rules and longer tariff suspensions. Small firms will be exempt from filing profit-and-loss accounts at Companies House from April 2028.

First-time buyers will also watch the Budget closely. A government-backed equity loan scheme called ‘Your First Home’ has been announced, letting buyers in England purchase a new-build home with a 2.5 per cent deposit and a 20 per cent government loan. More details are expected on 28 October.

The main rates of income tax, VAT and employee National Insurance are not going up, the government has said. The state pension triple lock stays until 2030, and the ISA allowance holds at £20,000 for 2026/27. Reports say a cut in the mansion tax threshold, from £2 million to £1.5 million, has been ruled out.

The Budget comes as the government faces pressure on several fronts, including a cabinet split covered in Burnham Faces First Big Test as Cabinet Splits Over Migrant Settlement Rules.

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