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On 26 November, the Government will unveil the final structure of Budget 2026. While the full document has not yet been published, the likely direction of travel is becoming increasingly clear. In recent days, The Independent has highlighted several areas under review — all of which could directly affect business owners and higher-income individuals.
At J. Dauman & Co., we monitor these early signals closely because they have a real impact on our clients’ financial planning. Below, we outline the key developments.
Income Tax – Potential Adjustments to Rates or Thresholds
According to The Independent, the Government is considering two main options:
- Increasing income tax rates by 1–2 percentage points, or
- Freezing or altering tax thresholds, which in practice operates as a stealth tax by pushing more earnings into higher bands.
The publication notes that higher income tax receipts remain one of the simplest tools for balancing public finances.
Implications for businesses:
- Higher employment costs for senior specialists
- Increased wage pressure across skilled roles
- The need to re-forecast salary budgets for 2026
Pension Tax Relief – Possible Restrictions for Higher Earners
Another area highlighted by The Independent is a review of pension tax reliefs.
Based on current commentary, potential changes may include:
- Restrictions affecting the highest tax bands
- Adjustments to annual contribution limits
- Revisions to rules for the self-employed
Recommendation:
Businesses should assess whether their current employee benefit structures will remain tax-efficient if these changes are introduced.
Property – Renewed Discussion Around High-Value Property Taxation
The possibility of a so-called “mansion tax” has resurfaced.
According to The Independent, considerations include:
- Higher council tax bands for high-value properties
- A new tax category for homes above a certain value
- Adjustments for individuals owning multiple properties
For investors and companies holding operational property, these factors should be incorporated into 2026 cost planning.
Fuel & Transport – A Potential Cost Pressure Area
Experts cited by The Independent suggest that changes to fuel duty are being examined.
This could significantly impact sectors such as:
- Logistics
- Manufacturing
- E-commerce
- Field-based services
For these industries, any increase could lead to noticeable rises in operating costs.
Business Rates – Potential Revaluation from 2026
The Independent also notes that, due to rising commercial property values, the Government may update business rates from 2026 onwards.
Businesses should consider:
- Reviewing their current rates assessments
- Exploring lease renegotiation options
- Preparing documentation should an appeal be necessary
What We Recommend Ahead of Budget Day
From an advisory standpoint, it is crucial for businesses to prepare for several possible outcomes before measures are formally confirmed. Early preparation supports financial stability, avoids time pressure, and enables faster responses once the Budget is published.
1. Update your financial forecasts for 2026
Prepare at least three scenarios — conservative, base, and high — to understand how potential tax changes or operational cost increases may affect margins, cash flow and available capital.
2. Assess labour-cost exposure to potential income-tax adjustments
Changes to tax rates or thresholds will increase employment costs for specialist roles. Review salary structures and pay models now to avoid unexpected wage pressure in Q1 2026.
3. Evaluate transport and fuel-related risks
Businesses with significant transport expenditure should model the impact of possible fuel-duty adjustments. Reviewing routes, contracts and logistics fees now may help offset sudden cost increases.
4. Review employee benefits in light of pension-relief changes
Potential restrictions for higher earners could affect the value of existing benefit programmes. Identify which arrangements remain tax-efficient and which may require redesign.
5. Review high-value property holdings
Possible measures — from updated business rates to renewed debate around a mansion tax — may increase the cost of owning property. Early assessment can support decisions around investment, refinancing or asset relocation.
Need help understanding how these changes could affect your business?
At J. Dauman & Co., we continuously analyse the developing Budget 2026 landscape and prepare cost and tax scenarios tailored to our clients’ needs.
If you’d like a clear, structured assessment of how the proposed measures could impact your results, investments, and operating model, our advisory team is here to help.
📩 office@jdauman.com
📞 +44 (0)20 8992 6071
Source:
The Independent, “Six big changes to expect from Reeves’ Budget and how they’ll impact your finances”, Marc Shoffman, 12 November 2025 — https://www.independent.co.uk/money/budget-2025-reeves-tax-changes-personal-finances-b2862788.html