Autumn Budget 2026: key tax and growth considerations for entrepreneurs and business owners

With the Autumn Budget 2026 approaching, entrepreneurs and business owners are hoping for announcements that bring greater economic certainty to the UK forecast.

The first two Budgets introduced by the current Labour government focused heavily on repairing the public finances, with significant tax raising measures affecting employer National Insurance and inheritance tax (IHT). With a general election expected within the next three years and cost of living pressures high on the list of issues affecting households and businesses, many are asking whether this Budget will be characterised by further tax rises, or a greater emphasis on growth.

Autumn Budget 2026: what the government’s growth agenda means for businesses

Despite difficult economic conditions, entrepreneurship and business growth remain central to government policy. In talks with leading business groups, Prime Minister Andy Burnham outlined his vision for a stronger partnership with the private sector as well as committing to bringing down costs for businesses, creating a better environment for firms to grow and invest and “delivering good growth in every postcode.”

Government policy papers have continued to emphasise support for smaller businesses. In HMRC’s Small and Medium-sized Enterprise (SME) action plan, it stated: “Our plan is to make the UK the best place to start and grow a business, with a culture that supports entrepreneurship in every community and high street.”

In September, John Healey further announced measures intended to reduce delays affecting business investment, together with a £150 million British Business Bank fund to support high-growth businesses across the North of England.

UK economic outlook ahead of the Autumn Budget 2026

The Government’s growth ambitions will need to be considered alongside ongoing pressures on the public finances.

Office for National Statistics figures show that public sector net borrowing reached £18.3 billion in August 2026, £3.5 billion above the Office for Budget Responsibility’s forecast. Borrowing for the financial year so far is now running £8.1 billion ahead of the OBR’s expected path.

Businesses also continue to face their own challenges with recent ONS data showing that 28% of trading businesses reported a fall in turnover during August. Economic uncertainty was the most commonly reported challenge affecting revenues, while 37% of larger businesses identified labour costs as their biggest challenge. 64% of businesses reported some degree of concern about energy prices.

Will the Autumn Budget 2026 change capital gains tax for business owners?

For many entrepreneurs and business owners, capital gains tax (CGT) continues to feature prominently in pre-budget speculation.

Given that the government has not ruled out changes to CGT, reform remains a possibility. Speculation has focused on measures such as increases to CGT rates, closer alignment with income tax rates and potential restrictions to existing reliefs and exemptions.

Any changes could have implications for business owners planning to exit from a business, succession arrangements or investments in a future business. The government will also be mindful that overly punitive changes could risk discouraging entrepreneurial activity at a time when growth remains a stated priority.

Some taxpayers with transactions underway are reviewing their position and considering the possibility and impact of a transaction date ahead of the Budget. However, with limited time before any announcements and no guarantee that proposed changes will be introduced, care should be taken before altering plans based solely on Budget speculation.

Business tax reliefs and investment incentives: what could change in the Autumn Budget 2026?

Alongside speculation about CGT, there are wider questions about the future of tax incentives designed to encourage investment and growth. Areas attracting attention include business asset disposal relief (BADR), and the EIS scheme and other venture capital incentives.

With the benefits of BADR significantly reduced from their previous levels, many entrepreneurs will be wondering whether this Budget will introduce other measures that substantiate the focus on growth and investment. Whether BADR itself changes is uncertain, but it forms part of a broader discussion about how the UK rewards entrepreneurial risk-taking and incentivises founders to build and grow successful businesses.

Following Brexit, the UK is no longer subject to the same state aid framework that previously governed some of the investment incentive regimes, such as EIS. In theory, this provides greater flexibility to offer targeted incentives that encourage investment into growing businesses and strategic sectors although given that new rules affecting EIS and VCT schemes took effect earlier this year, large scale changes to these seem unlikely.

For entrepreneurs, the key issue is often not simply the tax payable when a business is sold, but whether the wider tax system encourages people to start, fund and scale businesses in the first place. CGT, venture capital incentives and investment reliefs all form part of the wider investment landscape.

Can the UK remain competitive for entrepreneurs and investors?

The UK continues to generate innovative businesses, but questions remain about whether enough is being done to help them scale.

A recurring concern is that many growth companies can achieve higher valuations or attract greater pools of capital elsewhere. Tax policy is only one factor influencing these decisions, but it remains an important component of the UK’s overall competitiveness.

Autumn Budget 2026 planning advice for entrepreneurs and business owners

We will not know until the Budget whether any of the changes discussed in this article will be introduced and don’t recommend making decisions based solely on Budget speculation. As is often the case with Budget announcements, the detail will matter more than the headlines.

Understanding how any measures interact with existing rules, reliefs and commercial objectives will be critical in assessing their practical impact.

However, whether you are considering raising investment, planning a business sale, reviewing succession plans or assessing the potential impact of future tax changes, our specialists can help you understand how Budget announcements may affect you and your business.