Budget 2026: What It Means for Pubs, Business Owners, Landlords, Homebuyers and Developers

By the Commercial & Property Finance Team at Acorn.finance | Published 29 October 2026

Key points

A steady Budget, not a game-changer: real gains, real costs and a lot of small print.
Pubs get more rates relief but face higher wages and duty, with no VAT cut.
Business owners get a richer first-year allowance, but the Business Asset Disposal Relief limit is halved.
Landlords who own personally face property income tax rates of 24%, 44% and 49% from April 2027.
First-time buyers get a new equity loan scheme, but only on new-builds in England.
Developers get social housing funding, but viability is largely unaddressed.

The short version

Chancellor John Healey delivered his first Budget on 28 October 2026. There were no headline tax-rate shocks and no big-bang stimulus. Below is our overview. Each row links to a detailed article.

Who	Gains	Costs and catches	Read more
Pubs and hospitality	Pub rates relief up from 15% to 35% from April 2027; higher small business rates relief threshold	No VAT cut, a 3.9% wage rise, alcohol duty rising with RPI	Read more
Business owners	50% first-year allowance from January 2027; new Founders' Relief	Writing-down allowance cut to 12%; Business Asset Disposal Relief limit halved to £500,000	Read more
Property investors	Finance cost relief stays aligned with the property basic rate; companies are not affected by the income tax rise	Property income tax rates rise to 24%, 44% and 49% from April 2027	Read more
First-time buyers	2.5% deposit route; Lifetime ISA penalty cut; new First-Time Buyer ISA	New-build only, England only, local price caps, interest from year six	Read more
Developers	Extra £1.5bn for social and affordable homes; VAT-free land sales to social housing providers; biodiversity net gain exemption on small brownfield sites	Viability pressure largely unaddressed; no stamp duty change	Read more

Where each measure applies

Measure	Where it applies
Business rates relief and the small business rates relief threshold	England. Scotland, Wales and Northern Ireland set their own rates policy.
Your First Home equity loan	England only, on new-build homes.
Lifetime ISA change and First-Time Buyer ISA	UK-wide savings rules.
Capital allowances, Business Asset Disposal Relief, Founders' Relief, alcohol duty, minimum wage	UK-wide.
Property income tax rates	Individual landlords. Reported as applying in England, Wales and Northern Ireland. Scottish taxpayers should take advice because Scotland sets its own income tax rates.
Stamp duty	No change announced. Stamp Duty Land Tax applies in England and Northern Ireland, Land and Buildings Transaction Tax in Scotland and Land Transaction Tax in Wales.

If you are in Scotland, Wales or Northern Ireland, ask us how a measure applies to you.

What did not happen

No change to stamp duty.
No rise in capital gains tax rates, and no land tax or wealth tax.
No cut to hospitality VAT, despite a petition with more than 400,000 signatures.
No reduction in employer National Insurance for pubs.

Does it add up to growth?

The Office for Budget Responsibility now expects growth of 1.2% this year, 1% in 2027, 1.6% in 2028 and 1.8% in 2029. It expects inflation to rise to 3.75% early next year before falling to 2% in 2028. The Chancellor said debt interest now takes £1 in every £13 the government spends, which limits how much help any Budget can give.

For borrowers, the picture is mixed. The National Wealth Fund and British Business Bank receive an extra £20.4 billion over four years, which could widen lending to smaller firms. Banks also face a temporary increase in their profits surcharge from January 2027, and ASK Partners' chief executive Daniel Austin warned that higher taxes on property income and banks risk adding to the cost of lending.

On devolution, mayors will receive 20% of business rates revenue from next year, a share of income tax receipts from 2028, and all business rates are due to be retained locally by the end of the decade. Whether that unlocks regional growth depends on delivery.

The housing industry's verdict was mixed. Real Estate:UK's chief executive Vanessa Hale said the Budget:

"fell short of what's needed to address the viability crisis"

Vanessa Hale, Chief executive, Real Estate:UK · (Source: BE News, 28 October 2026)

Key dates

When	What
29 October 2026	Lifetime ISA withdrawal charge cut for existing holders buying above £450,000
End of December 2026	Your First Home pre-registration opens
1 January 2027	50% first-year allowance begins
1 February 2027	Alcohol duty rises with RPI
February 2027	Your First Home applications open
April 2027	Higher pub rates relief and small business rates relief thresholds; first Your First Home loans; writing-down allowance falls to 12%; new minimum wage rates; property income tax rates; Business Asset Disposal Relief limit falls to £500,000; Machine Games Duty rise
6 April 2028	Reported start of a new framework for taxing company distributions
April 2029	First-Time Buyer ISA launches

Dates are from the Budget document and published reporting. Confirm against the legislation before acting.

Read the detail

Budget 2026 for Pubs: Rates Relief Rises to 35%, but Is It Enough?Pub rates relief in England rises from 15% to 35% from 1 April 2027.Budget 2026 for Business Owners: Capital Allowances, BADR and Founders' ReliefThe Business Asset Disposal Relief lifetime limit halves from £1 million to £500,000 for disposals on or after 6 April 2027.Budget 2026 for Landlords: Property Income Tax Rises, and Why Incorporation Deserves a LookFrom 6 April 2027, individual landlords pay property income tax at 24%, 44% and 49%.Budget 2026 for First-Time Buyers: Your First Home, the LISA Change and the New ISAYour First Home offers a government equity loan of up to 20% on new-build homes in England, from a 2.5% deposit.Budget 2026 for Property Developers: Funding, Viability and Where the Opportunities AreAn extra £1.5 billion for social and affordable housing, reported as delivering about 10,000 homes.

Sources

Discuss your plans

Speak to an Acorn.finance broker about how the Budget affects your finance plans.

0207 959 3882

This article is general information based on the Budget document and published reporting as at 29 October 2026. Details may change as legislation is published. Acorn.finance does not provide tax or legal advice. Take advice from a qualified accountant or solicitor before acting. Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured against it. Finance is subject to status and lender criteria.