The UK Chancellor has set out the autumn budget, built around three priorities: easing the cost of living and cost of doing business, backing enterprise to drive innovation and growth, and tackling challenges in energy, national security, public procurement and housing, according to Edinburgh Chamber of Commerce.
On energy, Edinburgh Chamber of Commerce said the government will extend the VAT cut on electricity to July 2027 and remove standing charges on household gas bills from 2027, with further detail on electricity reforms due next year. Households in England in council tax bands A-D will receive a £100 Household Energy Payment, it said. For business, the British Industrial Competitiveness Scheme will offer a 20-25% electricity discount to 10,000 energy intensive manufacturing firms from April 2027, including a back payment for 2026-27, Edinburgh Chamber of Commerce said.
On tax and income, the Chamber said the National Living Wage and National Minimum Wage will rise by 3.9%, the 5p fuel duty cut will be extended, and the Bank Corporation Tax Surcharge will temporarily rise from 3% to 6% between January 2027 and March 2028 to fund household energy support. Business rates changes in England were also announced, including extra relief for pubs and live music venues and a higher Small Business Rate Relief threshold, though Edinburgh Chamber of Commerce said it will need to await the Scottish Government budget on 3 December to see whether these are replicated in Scotland.
On investment and innovation, the Chamber said the government plans additional funding for the National Wealth Fund and British Business Bank, a new UK Export Finance guarantee for SMEs from 2027, and a new Capital Gains Tax Founders’ Relief from April 2027 offering a reduced 10% rate on up to £10 million of lifetime gains. Over £700 million has been promised for AI development, it said, including £18 million for a UK Advanced Chip Design Academy led by the University of Edinburgh.
On regional devolution, Edinburgh Chamber of Commerce said 100% of business rates in England will be retained locally by the end of the decade, and confirmed that the Scottish Government will receive an additional £600 million through the Barnett formula between 2026-27 and 2029-30.