Budget 2026 - The employment angle
Budget 2026- Comment on Employment Issues from Constantine Law
28th October 2026 –Alan Lewis, Partner at Constantine Law commented:
“The measures highlighted in this Budget point to a familiar balancing act. It is about improving working incomes while giving businesses the confidence to recruit and invest.
The announced 3.9% increase in minimum wage rates will be welcome to those benefiting, but labour-intensive sectors such as retail, hospitality and social care will need to assess the wider payroll impact, including pressure to maintain differentials above the statutory minimum.
Employers should prepare their pay systems and check that deductions and working time practices do not undermine compliance.
The commitment to tackle the gender pay gap also needs to translate into practical action on recruitment, progression and retention; a pay gap is not, by itself, proof of unlawful unequal pay.
Extending financial support to eligible self-employed fathers and partners would address a gap in family support, but should not be confused with automatically giving the self-employed an employee’s statutory right to take leave.
For growing businesses, the proposals on skilled worker visas, non-compete clauses and employee share options could be particularly significant. Depending on the final rules, visa reform could affect access to specialist skills, while changes to non-competes could make it easier for people to move jobs or establish competing businesses. Employers would need to review how they protect confidential information and customer relationships rather than assume existing restrictions will remain appropriate.
A further expansion of Enterprise Management Incentives could help eligible businesses compete for talent by offering employees a stake in future success, although options are not a substitute for minimum wage compliance and their value is not guaranteed.
The proposed entrepreneur allowance, founders’ capital gains relief and unchanged dividend taxation may influence business planning, but their precise scope needs checking before drawing conclusions.
More frequent self-assessment payments would principally raise cashflow questions for the self-employed; tax payment arrangements do not, of themselves, determine employment status.
For UK industry, the investment and devolution measures—including National Wealth Fund support, scale-up funding for female-led businesses, regional growth funds, greater local retention or allocation of tax revenues, apprenticeship support and increased defence investment—could strengthen recruitment and supply-chain opportunities if they translate into funded projects and accessible training.
First time buyer support could also assist labour mobility, although its effect will depend on eligibility, housing supply and affordability.
The test is whether these measures deliver sustainable jobs and productivity gains beyond the headline announcements. Employers should connect investment plans with workforce development, while employees and the self-employed will need clarity on who benefits and when.”
Alan Lewis is a partner at Constantine Law