2026 Autumn Budget: What every employer and professional needs to know 

As the Chancellor prepares to unveil the 2026 Autumn Budget on 26 November, employers and professionals are anticipating a fiscal update that could reshape workforce strategies and career plans for the year ahead. With rising employment costs, persistent skills shortages, and evolving employee expectations, the Chancellor’s decisions will carry significant implications for hiring, pay, and organisational agility. 

Using data from our 2026 Salary & Recruitment Trends guide, supported by our research of over 5,100 respondents across the country, we’ve set out how the upcoming Budget announcements could shape workforce trends for the year ahead. 

New policy could add to employment costs  

This year’s Autumn Budget is expected to be framed by a projected fiscal shortfall, with the government likely to avoid headline tax increases but instead explore alternative revenue streams.  

With this in mind, it seems unlikely that National Insurance Contributions (NICs) will rise again following the last Budget’s increases. However, it’s expected that the National Minimum Wage will rise to at least £12.70 per hour. If implemented, this change alone will impact payroll budgets, particularly in sectors reliant on lower-paid roles, with some leading economists warning that young people’s employment chances could be negatively impacted as a result. 

The predicted increase to minimum wages would add to heightened employment costs, with employers already grappling with higher NICs and the cost of complying with new workers’ rights established in the upcoming Employment Rights Bill. Regarding the latter, it’s believed that compliance with these new rights could cost businesses up to £5 billion each year, according to the government’s own figures. 

Employers focused on growth remain open to hiring 

Although employment costs are a growing burden for many organisations, our latest salary guide data suggests that the hiring outlook remains positive. Over three-quarters (77%) of employers plan to recruit new talent in the coming year, reflecting the drive for business growth and continuity.  

However, the growing expenditure of taking on new staff may require a more agile approach. Most leaders we surveyed (55%) anticipate revising their hiring approach within the next 12 months as a result of increased employment costs. For employers already navigating tight margins, the Budget’s measures might prompt further reassessment of workforce composition; potentially with increased reliance on temporary and contract staff to manage costs and maintain flexibility. 

Ambitious professionals could seize new opportunities 

It’s not just employers who are reassessing their strategies – employees are also responding to the changing landscape.  

While personal income tax thresholds are not expected to rise, it’s believed that the Chancellor will extend the freeze by an additional year to 2029-2030. This ‘stealth tax’ means that as wages continue to rise, more workers will be pushed into higher brackets – and potentially eager to find a new role that more favourably compensates this increased rate, particularly among high-income earners. 

Our latest salary guide data shows that 62% of professionals are planning to change jobs in the next 12 months, rising from the year prior. But as employers face tighter margins, and look to keep a leaner headcount, jobseekers should be prepared for a more competitive and cost-conscious job market. In response, professionals will want to consider how their expertise and skill sets can add immediate and long-term value to an organisation – especially in light of AI developments and the push to automate lower-value tasks. 

A reinforced need for strategic planning 

While the full details of the 2026 Autumn Budget won’t be known until late November, the signals are clear: employers must prepare for higher costs and evolving workforce expectations.  

Strategic workforce planning is no longer optional, especially given the upcoming changes to employment legislation. Employers must anticipate how the new rules – such as stricter definitions of zero-hour contracts or expanded parental leave rights – will affect hiring models and workforce composition. But with the right strategies and partners, organisations can turn these challenges into opportunities.  

Whether you’re planning to scale your team, optimise your contingent workforce, or refine your pay strategy, Hays is here to help. Our recruitment services and workforce solutions are designed to support your hiring goals and be ready for what’s next. 

Get in touch with one of our expert consultants to find out how Hays can support your hiring goals and workforce ambitions. 

Or if you’re looking for your next career opportunity, browse our latest jobs and choose from a range of leading employers.