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Autumn Budget Deepens Tax Trap for HENRYs, with Marginal Tax Rate on Savings Hitting 64%
The government kept the £20,000 cash ISA limit while raising taxes on savings and property income, a move advisers say will hit higher earners hardest.
On October 28, 2026, British Chancellor John Healey announced the Labour government's Autumn Budget, introducing significant changes to business rates, taxation, and capital allowances aimed at fiscal consolidation and household support.
Reversing previous policy, the government maintained the £20,000 Cash ISA annual allowance for individuals under 65, cancelling the planned reduction to £12,000 set for April 2027.
From April 1, 2027, the government will increase Small Business Rates Relief eligibility thresholds for retail, hospitality, and leisure properties; the National Living Wage for workers over 21 rises to £13.21 per hour, up 50p from £12.71.
Revenue generation measures include increasing the bank surcharge to 6 percent, raising combined corporation tax to 31 percent, and hiking the Electricity Generator Levy to 55 percent until March 2028.
Communities will receive £432 million to tackle homelessness, alongside the rollout of a Good Growth Fund to align public financial institutions and private capital behind catalytic regeneration projects across England.