Autumn Budget 2026: What It Means for Charities
The Autumn Budget is on 28 October 2026. What charities and community groups have asked for, what to watch on the day, and what it could mean for grants.
The Chancellor, John Healey, will deliver his first Budget on Wednesday 28 October 2026. For charities and community groups, the big questions are about funding: how much reaches local groups through councils, whether grants and contracts will cover the real cost of the work, and what happens to tax reliefs on giving. Here is what the sector has asked for and what to watch on the day.
Last checked: 9 October 2026. We will update this page after the Budget, on 29 October.
When the Budget is and how it works
HM Treasury confirmed the date on 31 July. The Chancellor's statement to Parliament usually starts around lunchtime. On the same day, the Office for Budget Responsibility publishes its economic and fiscal forecast, which sets out how the government's plans affect the public finances.
The speech gives the headlines. The detail that matters to charities often sits in the documents published afterwards, so expect a clearer picture a day or two later.
What the sector has asked for
More than 80 organisations, working together as the Civil Society Group, sent a joint submission to the Treasury. The Charity Finance Group's summary lists the main asks:
- government grants, contracts and procurement that fund the true cost of delivering services, including full cost recovery, multi-year funding and yearly increases for inflation
- modernising Gift Aid and protecting tax reliefs on donations and gifts in wills
- support for place-based giving schemes and local voluntary sector support organisations
- a long-term national strategy for community ownership, with more funding for community buildings and spaces
In Scotland, SCVO has made a similar call. One specific ask is that public funders cover the higher mileage rate for volunteer drivers. The tax-free rate went up to 55p a mile, but many grants and contracts for 2026/27 were agreed at the old rate of 45p (SCVO briefing).
We covered these asks in episode 1 of The Funding Week.
Full cost recovery and public contracts
Full cost recovery means a grant or contract pays for the whole cost of the work. That covers a fair share of rent, insurance, management and IT, as well as the project worker. Many charities delivering public services say their contracts don't do this, so they make up the gap from reserves or donations.
If the Budget commits to full cost recovery in government funding, it would mostly affect charities with public contracts or grants from government departments. Small groups funded by trusts and the Lottery would feel it less directly. Some independent funders already pay a share of overheads. Our grant budget template shows how to cost them in a bid.
What to watch on the day
- Local government funding. A lot of grant money reaches community groups through councils, so any change to council budgets matters.
- Employer costs. Changes to employer National Insurance or the minimum wage hit charity payrolls straight away.
- Gift Aid and giving reliefs. Any reform, positive or negative, affects your fundraising.
- Community ownership and buildings. Watch for funding for community assets.
- Specific funds for areas like food, energy, youth or loneliness, which may later become grants for groups.
What it could mean for grant funding
Most grant funders, from the National Lottery to local community foundations, set their own budgets. A Budget doesn't change their current rounds overnight, so don't hold off applying. Open funds keep their own deadlines.
A few worth knowing now, whatever the Budget says:
- Awards for All England gives £300 to £20,000 for projects of up to two years, with decisions in about 16 weeks.
- The Esmée Fairbairn Foundation funds core costs, including salaries and overheads, and offers unrestricted funding. Grants start at £30,000 and most last three to five years. It doesn't fund organisations with a turnover under £100,000.
- The Leeds Building Society Foundation gives small grants of up to £2,500 for core, project or capital costs to housing and homelessness charities with a turnover under £500,000. The current window closes on 11 November.
You'll find more on our page of charity grants open now, and in our guide to grants for charities.
Update: what the Budget said
We will add a short summary here on 29 October, covering anything in the Budget that affects charities, community groups and grant funding.
Questions people ask
Will the Budget give charities more money? We won't know until 28 October. The sector's asks focus on how government funds charities, not on new grant programmes.
Should we wait for the Budget before applying for grants? No. Most grant funders aren't affected straight away, and deadlines won't move.
Where can I read the Budget documents? They are published on GOV.UK on the day, alongside the OBR forecast.
Want the Budget news that affects your funding? Create a free GrantMatch account for grant alerts, or listen to The Funding Week, our weekly look at UK funding news.
We check every deadline on the funder's own website before publishing. Funders do change dates, so always confirm on their site before you apply.