Autumn Budget 2026: 7 measures nail & beauty businesses need to know
By Scratch Staff | 28 October 2026 | Featured, News & Events
Chancellor of the Exchequer, John Healey, presented the Autumn Budget today (28 October) and promised ‘a Budget for the working people of Britain’.
He delivered the Budget earlier than previous years, in a bid ‘to give the country a bit of breathing space’. Here are the measures worth noting for nail and beauty pros:
Threshold increased for small business rate relief
As had been expected, Healey announced an increase in the threshold for small business rate relief for retail, hospitality and leisure businesses – including hair and beauty businesses – from £12,000 to £18,000.
He revealed that for 70,000 businesses in Britain, this will prevent them from paying business rates altogether, and it will be funded by increased taxes on gambling.
Gas standing charge scrapped
The Budget stated that the standing charge on household gas bills will be scrapped from 2027 or ‘as soon as possible after’, saving around 23 million UK households £45 per year on average. While this does not apply to commercial businesses, it will affect companies like salons that operate from home.
VAT cut on electricity extended
Healey announced that the VAT cut on electricity will extend to July, taking ‘£50 off the annual price cap’.
Business mileage rate updated
Earlier this week, it was revealed that the tax-free mileage rate is permanently remaining at 55p per mile for the first 10,000 miles. However, there will be an increase in the rate from 25p to 35p per mile for distances above 10,000 miles.
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This not only affects the amount at which employers can reimburse staff tax-free, but self-employed workers can also claim in tax relief when using their own car for business purposes.
In addition, the Budget stated that the 5p cut to fuel duty has been extended until July.
National Minimum Wage & Living Wage set to rise
From April 2027, Healey shared that the National Minimum Wage and National Living Wage will increase by 3.9% ‘for 2.3 million of our lowest paid workers’, affecting both 18-20-year-olds and those aged 21 and over.
Support for young and female entrepreneurs
Healey unveiled a Young Entrepreneurs Allowance, covering a year of living costs for young business founders, as well as a scale-up programme for female founders. The chancellor also revealed that the British Business Bank will double its commitments to women-led businesses, in funds to £200 million.
Parental pay introduced for self-employed partners
Ahead of the Budget, it was announced that self-employed fathers and eligible partners will receive up to two weeks of parental pay at £194 per week. The measure was particularly significant as self-employed fathers and same-sex partners have been left out of financial support previously.
