The Budget 2026

Chancellor John Healey began his speech by calling his first Budget one for the "working people of Britain, for British businesses big and small". The UK Budget 2026 focused on helping households with the cost of living while supporting business growth. Key measures included a 3.9% increase in the National Minimum Wage, which will raise workers’ incomes but also increase labour costs for businesses. The government announced support with energy bills, including a £100 payment for many households and measures to reduce energy costs. For businesses, Corporation Tax was kept the same, while business rates relief for many small retail, hospitality and leisure businesses was extended, helping to reduce costs. The Budget also included investment in housing, local economic growth and infrastructure to encourage jobs and long-term growth in the UK economy.

BBQ - Did you see the budget?

Budget 2026

Budget Fears Hit Spending

Retail sales in the UK experienced a notable decline in October, with volumes falling by 0.7% compared to the previous month. This drop comes after a modest rise of 0.1% in September, which was revised down from an initial estimate of 0.3% The recent Budget announcement has been identified as a key factor behind this decrease, as uncertainty and speculation over potential tax increases led consumers to hold back on spending The Office for National Statistics (ONS) reported that clothing stores were particularly hard hit, with sales dropping by 3.1% in October The unseasonably warm weather also contributed to reduced demand for winter clothing, further impacting sales. Despite the monthly decline, retail sales volumes were up by 0.8% over the three months leading to October, indicating some resilience in the broader trend. Retail experts have expressed concern over the timing of this decline, as retailers are now entering the crucial holiday shopping season. However, there is optimism that with the Budget uncertainties now resolved and interest rates stabilizing, consumer confidence may improve in the lead-up to Christmas.

BBQ: How might the recent Budget announcement and the resulting decline in retail sales impact businesses and consumers in the UK? 

Retail Slump