Autumn Budget 2026 response: our assessment of the relevant announcements for our industry
The Budget includes positive commitments to support growing businesses, simplify the tax system and advance regulatory reform, alongside ambitions on defence, resilience and devolution. However, while timebound, the increase in the bank surcharge risks weakening UK competitiveness, and the decision not to remove stamp duty on UK equities is a missed opportunity. Greater clarity is also needed on regulatory reform, AI and changes to non-compete clauses to ensure these measures support growth without adding unnecessary complexity. More detail on what the Budget means for our industry is outlined below.
Taxation
We welcome the Chancellor's commitment to simplify and modernise the tax system. We have consistently called for a tax framework that is simpler, more predictable and designed with growth and international competitiveness in mind. The consultations announced today on Corporate Tax and its administration are therefore a positive step. The priority now should be to translate that ambition into meaningful reductions in complexity and compliance costs for businesses, with a clear growth and competitiveness test applied to reforms. We look forward to working with HM Treasury and HMRC to help develop the proposals ahead of the 2027 Tax Update that the Chancellor announced today.
The government has published a consultation on corporate tax simplification for business investment (deadline 21 November). The paper published today repeats our consistent messaging on the importance of a stable and predictable corporation tax system that gives businesses the confidence to invest, innovate and grow. It also addresses our calls to simplify the tax system by tackling overlapping regimes, reporting requirements and administrative burdens. We will work with members to review the proposed areas for simplification, and potential improvements to the development of new tax policy and legislation.
Modernising taxation of foreign sovereign investments
From 1 January 2029, the government will introduce a new statutory tax regime for foreign sovereigns, including sovereign wealth funds and state-owned pension funds. This will bring certain real estate income and gains into UK tax. These proposals will need careful consideration to ensure the UK remains a competitive jurisdiction for inward investment by sovereign wealth funds and overseas public pension funds. For example, our research highlighted that the UK was the world's second most attractive destination, behind the US, for investment by sovereign wealth funds in 2022-23, so the stakes regarding remaining a competitive jurisdiction for inward investment are far from trivial.
Devolution
We have been a long-standing supporter of greater devolution within the UK and are supportive of the initiatives announced today to give leaders on the ground more levers to drive growth and investment.
Through our 'Enabling growth across the UK' report and our manifestos for mayors and devolved nation elections, we have consistently called for stronger local leadership to drive investment, improve connectivity and develop local talent. Our metro mayor manifestos set out practical priorities: clear economic growth strategies, skills provision shaped by employers, and structured engagement with businesses and investors. The financial and related professional services industry must be fully represented in these partnerships, so that local decisions reflect the needs of the whole economy and unlock private investment. We will continue to engage with the government ahead of the expected White Paper on further devolution, which is expected later this year.
There are opportunities for places and business in the new funding announced for mayors’ 'Good Growth Funds' and incubator capital for areas transitioning towards mayoral devolution. These can help crowd in private investment when matched by credible projects and strong investor engagement. With access to talent a critical priority for our industry, we were also pleased to see the announcement of £100m for local apprenticeship services. This aligns with our calls to match skills provision to local employers’ needs, an approach we have supported through the Yorkshire and the Humber Financial and Professional Services Skills Commission. Employer involvement from the outset will be vital to make these services effective. We will be engaging with mayoral combined authorities and the Office for Investment to explore how we can support the development of these initiatives.
Our work with the Office for Investment’s Strategic Investment Opportunities Unit (SIOU) provides a practical model for this partnership, bringing industry expertise to the task of connecting capital with investable projects. The Scotland Investment Acceleration Programme (SIAP), which we delivered alongside the UK Government and Scottish Cities Alliance, offers a complementary example of how investor insight can strengthen local capability and investment propositions.
Backing British business
The Budget’s strong focus on backing British businesses to start, scale and succeed was positive. The additional investment in the National Wealth Fund and British Business Bank, alongside the new Capital Gains Tax Founders’ Relief, the Young Entrepreneurs Allowance, Scale UK – the scale-up women’s programme, and public procurement initiatives, are important steps towards strengthening the environment for growing businesses.
These measures align closely with what we have been calling for: extending support further along the growth journey so that promising businesses have the finance and investment they need to start, scale, succeed and stay in Britain.
The challenge now is delivery. Our upcoming work on financing growth across the UK’s regions and nations will set out how government and industry can work together to ensure ambitious businesses can access the right finance, at the right stage, wherever they are based. We also look forward to working with government to build on Mansion House commitments to accelerate the deployment of capital into UK businesses.
Artificial intelligence
The Chancellor’s growth speech is broadly aligned with our pro-innovation approach to AI, particularly its emphasis on driving economic growth and productivity, accelerating commercial adoption, reducing regulatory burdens and introducing new sandboxing powers across the economy, ready for deployment next year. The commitment to balancing innovation with appropriate oversight also supports our focus on responsible AI adoption.
We note the investment in the Sovereign AI Fund and its R&D Procurement Scheme, alongside the government’s Data Centre Covenant to strengthen local benefits, accelerate grid connections and support on-site generation. These measures address key infrastructure barriers to the UK’s AI ambitions. The speech recognises the national and business security risks associated with AI, underlining the importance of ensuring that the UK’s expanding AI infrastructure is developed securely and resiliently. As investment in compute capacity grows, continued collaboration between government and industry will be important to address cyber risks to data centres and their supply chains, strengthen operational resilience and mitigate emerging AI-enabled threats. This will help build the foundations for responsible AI adoption, support investor confidence and reinforce the UK’s position as a leading global technology and financial centre.
ISAs
The new ISA incentive and the first-time buyer ISA are positive steps. Retaining the £20,000 Cash ISA limit reflects our call to avoid complexity in the regime, which risks discouraging people from saving and investing. Government should now focus on a joined-up approach across ISAs, NS&I, pensions and other savings and investment products that builds financial confidence, supports investor choice and helps put more UK savings to work in the UK economy. Any changes to ISAs must ultimately drive more investment into UK growth companies.
Stamp duty
The government’s recognition of the case for cutting stamp taxes on shares was welcome, and in line with evidence we have provided on the potential benefits for investment and UK capital market competitiveness. We will continue to work with government to make the case for reform and build on this important acknowledgement.
International talent
The devil will be in the detail, but the commitment to reform the UK visa system to deliver the most pro-business migration system in Europe for highly skilled workers was positive to hear.
Defence
The Chancellor's comments on additional defence expenditure and in particular greater engagement with private capital reflect the considered views of members of our Defence & Resilience Group. We see opportunities to engage further with the Defence Finance Taskforce on the provision of innovative private funding mechanisms.