Head of Tax comments on the business impact of the Budget

Claire Blackburn, Head of Tax, PwC UK comments on the Budget 2026:   

“This felt like a less-is-more Budget for business. There was a sprinkling of giveaways, including cuts to business rates, but perhaps the biggest win – to borrow the Chancellor’s maritime theme – was not rocking the boat. 

The bank surcharge rise was smaller than many feared, while the minimum wage increase was more modest than in the previous two years. The so-called sin-tax net is widening – from traditional targets like tobacco and alcohol to vaping and gambling. But for business more broadly, there were no big surprises lurking below deck. 

That said, incremental changes can add up. For example, while smaller businesses will welcome the new reliefs announced and the increase in some allowances; larger businesses with significant brought-forward capital allowance pools, the annual rate reductions announced today could materially increase the tax they pay year on year. 

After a period of uncertainty, the relative stability from today’s Budget matters – not just for homegrown businesses, but for international investors looking at the UK. The task now is to ensure that stability translates into the confidence and investment needed to drive growth.” 

Our full budget reaction