Chancellor of the Exchequer, John Healey MP, announced the UK Budget 2026 in Westminster Parliament on Wednesday 28th October. You can also read the associated HM Treasury Press Release.
SGF will continue to engage with the UK Government on relevant issues. Key announcements for the Scottish convenience sector, include:
Employment - From April 2027, the National Living Wage will increase by 3.9%, from £12.71 to £13.21 per hour for workers aged 21 and over. The National Minimum Wage will also rise by 3.9% across all younger age bands, increasing to £11.27 per hour for 18–20-year-olds and £8.31 per hour for 16–17-year-olds and eligible apprentices.
Fuel Duty - The 5p Fuel duty cut extended to July 2027.
Electricity - The Chancellor will extend the VAT cut on electricity through the winter and spring to July, which the chancellor says will take £50 off the annual price cap.
Till Fraud - The UK Government will introduce mandatory software standards for Electronic Point of Sale and Mobile Point of Sale systems to tackle electronic sales suppression.
Soft Drinks Industry Levy uprating - the SDIL will be uprated on 1 April 2027. The Levy will be increased in line with Consumer Price Index plus one fifth of the ‘catch up’ increment to reflect the 27% CPI increase between 2018 and 2027.
Alcohol - Alcohol duty rates on non-draught alcoholic products will increase by 3.9% in line with RPI inflation. This will be implemented 1st February 2027.
Small Producer relief - £10 million per year of support to over 2,000 small alcohol producers across the UK.
Other taxation - No changes to the headline rates of income tax, National Insurance contributions, or VAT have been announced.
Business Rates Relief (ENGLAND ONLY) - The UK Government is increasing the SBRR eligibility thresholds for qualifying RHL properties in England from 1 April 2027. The threshold for 100% relief will increase to a rateable value of £18,000, and the threshold for tapered relief will increase to a rateable value of £21,000. (SGF will make the case that similar rates must be passed on by the Scottish Government to Scottish businesses.)
The Scottish Government will also receive an additional £600 million for public services through the application of the Barnett formula.
