National Minimum Wage increases
The National Minimum Wage will increase from 1 April 2027. The table below compares the current 2026 rates with the 2027 rates.
| Age | 2026 hourly rate | 2027 hourly rate | % increase |
| Aged 21 and over (National Living Wage) | £12.71 | £13.21 | 3.9% |
| Aged 18 to 20 inclusive | £10.85 | £11.27 | 3.9% |
| Aged 16 to 17 inclusive | £8 | £8.31 | 3.9% |
| Eligible apprentices | £8 | £8.31 | 3.9% |
The rise for 18 to 20-year-olds is the same for those aged 21 years and over. The Labour government has previously expressed a desire to align hourly rates for all working adults, and this was reflected in higher percentage increases for 18 to 20-year-olds in the previous two years. This budget does not remove that goal but instead shows a slower pace of alignment.
Fuel duty cut extended
The current 5p-per-litre fuel duty cut is extended to 1 July 2027. This had been expected to end at the start of next year. This move will offer some reassurance to hauliers and drivers as the price of diesel and petrol continues to be affected by conflict in the Middle East.
Small Business Rates Relief (SBRR)
From April 2027, more businesses in England will qualify for Small Business Rates Relief (SBRR) as the threshold for 100% relief is raised from £12,000 to £18,000. Qualifying businesses with a property valued between £18,000 and £21,000 will also receive a tapered discount that gradually reduces as the property value increases. This means that more shops, pubs, restaurants and other qualifying retail, hospitality and leisure businesses in England will pay less (or nothing) in business rates.
The government estimates that this will remove around 70,000 high street businesses from business rates altogether.
Business rates reduction for the RHL sector
The Chancellor has said that there will be an extra 20% reduction on business rates for businesses in the retail hospitality and leisure (RHL) sector. This will apply to pubs, social clubs and most live music venues in England.
Parental leave and pay for self-employed fathers, partners and adopters
From April 2029, for the first time, eligible self-employed fathers, partners and adopters will be eligible for 2 weeks’ paid parental leave, which is currently worth up to £194 per week.
Founders’ relief
The Chancellor today announced that from 6 April 2027, the amount people can earn tax-free from a new business venture (the Trading Allowance) is rising from £1,000 to £3,000. This is to support entrepreneurs to take the first steps in starting a small business.
Also from 6 April 2027, qualifying company founders who sell shares in their business will pay reduced Capital Gains Tax at a rate of 10% on up to £10 million of gains over their lifetime, rather than the usual higher rate. The goal is to support individuals who take risks to build and scale growth.
