The Autumn Budget on 28 October: five things for charities to watch

The Autumn Budget lands on Wednesday 28 October 2026, and charities go into it under real pressure — rising costs, tighter funding, banking difficulties, and closures of small and medium charities accelerating. Sector bodies have already pressed the government on a shared set of asks. But it's worth being clear up front: most of what's circulating is prediction and lobbying, not confirmed policy. This is a plain-English guide to the five things worth watching on the day, and what they could mean for faith-based charities. It is general information, not advice.

1. Gift Aid — reform, or another review?

Gift Aid matters enormously to faith charities, and the sector is pushing hard for it to be modernised and simplified (the Charity Finance Group's "Back the Future of Gift Aid" campaign, echoed in a joint Civil Society submission). Watch for whether the Budget offers a genuine commitment to reform — or just a further review. Either way, nothing changes how you claim today, so keep claiming as normal (see Gift Aid: the rules and how to claim).

2. Full-cost recovery and multi-year funding

Many faith charities deliver public services on grants and contracts that don't cover their true costs. The sector is asking for full-cost recovery and multi-year funding in government grants and contracts, plus inflationary uplifts. For grant-dependent organisations, a commitment here would matter more than almost anything else — watch whether it appears.

3. Legacy and philanthropy incentives

Gifts in wills and the tax reliefs that encourage charitable giving are a significant income source, especially for established faith charities. The sector is asking that these incentives be protected. Watch for anything that strengthens — or quietly erodes — the reliefs around charitable legacies and major giving.

4. Employer National Insurance (and pension salary sacrifice)

The government has committed not to raise the rates of income tax, employee National Insurance or VAT. The live question is employer NI, which rose in 2024 and hit charities as employers. Don't expect a rate rise, but watch for targeted relief — and, separately, for any tightening of National Insurance relief on pension salary-sacrifice, which would affect how you reward staff (this connects to payroll and pension auto-enrolment).

5. Business rates

Reform of business rates has been trailed, including changes to Small Business Rate Relief. One important nuance for faith charities: you already get 80% mandatory charitable rate relief on premises used for charitable purposes, so the bigger impact of any change tends to fall on charity shops and trading premises rather than your place of worship. Watch the detail if you run any trading space.

A word of caution

Everything above is, for now, a watch-list, not a forecast. Pre-Budget predictions are often wrong, and charity-specific measures are rarely leaked in advance. Don't restructure your finances around a rumour. After the statement, the real detail is in the official Budget documents on gov.uk.

What to do

• Don't plan around predictions — wait for the actual announcements.
• After 28 October, check the specifics that touch you: Gift Aid, employer NI, business rates, any grants/contracts commitment.
• Keep building resilience regardless — a sensible reserves policy and scenario planning matter most in an uncertain year. We'll flag anything significant for faith charities on the Knowledge Hub after the Budget.

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This article is general information, not advice. It reflects the position before the Budget; measures described as possible are not confirmed. Check the official Budget documents after 28 October 2026, and talk to us if you'd like help working through what any changes mean for your charity.