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Autumn Budget Deepens Tax Trap for HENRYs, with Marginal Tax Rate on Savings Hitting 64%
She said the package will give families and firms immediate relief through a £100 energy payment, business rates help and housing support.
On October 28, 2026, British Chancellor John Healey announced the Labour government's Autumn Budget, prioritizing fiscal consolidation through tax increases while offering temporary household support measures to families across the United Kingdom.
The budget reshapes capital allowances, reducing the main writing-down allowance from 14 percent to 12 percent to retain revenue for the next three years while offsetting investment incentives.
From April 1, 2027, Small Business Rates Relief eligibility thresholds for retail and hospitality will increase, while savings and property income tax rates rise by two percentage points across all bands.
Workers over 21 on the National Living Wage will earn £13.21 per hour from April 1, while 96% of households in Jarrow and Gateshead East receive £100 payments in January 2027.
Mayors will retain 20 percent of future business rates growth as the government simplifies 38 revenue streams for local authorities, worth £56bn over three years, expanding fiscal autonomy.