Businesses across Omagh and the surrounding areas are being encouraged to review the announcements in Budget 2026 and consider how changes to taxation, wages, investment and business support could affect their operations.
The UK Government’s Budget, announced on Wednesday 28 October 2026, includes a range of measures affecting businesses throughout Northern Ireland, from small independent retailers and start-ups to manufacturers, agricultural enterprises and larger employers.
Here is a breakdown of the key announcements and what they could mean for the local business community.
Economic Outlook
The UK economy is forecast to grow by 1.2% in 2026, slowing to 1% in 2027 before recovering to 1.6% in 2028 and 1.8% in 2029.
Government borrowing is forecast to gradually fall over the coming years, while public debt is expected to peak at 83.8% of GDP before declining.
For businesses in Omagh, the economic outlook highlights the importance of careful financial planning, managing costs and identifying opportunities for growth.
Additional Investment for Northern Ireland
The Northern Ireland Executive is set to receive an additional £270 million through the Barnett formula.
Other announcements include:
- £7.5 million for cybersecurity and AI: Investment in Queen’s University Belfast’s Cyber AI Hub to support innovation and growth in Northern Ireland’s technology sector.
- £1 million for an Investment Summit: Funding to showcase Northern Ireland as a destination for investment and highlight opportunities in growing industries.
- Manufacturing energy support: Funding for a Northern Ireland scheme aimed at reducing electricity costs for energy-intensive manufacturers.
- Skills and apprenticeships: Plans for a region-wide defence skills and apprenticeship programme.
These measures could create opportunities for businesses in Omagh, particularly those involved in technology, manufacturing, engineering and professional services.
Minimum Wage Increases from April 2027
Employers should prepare for changes to minimum wage rates taking effect on 1 April 2027.
| Category | New hourly rate |
|---|---|
| National Living Wage | £13.21 |
| Ages 18–20 | £11.27 |
| Ages 16–17 | £8.31 |
| Eligible apprentices | £8.31 |
For local businesses employing staff, particularly in retail, hospitality and other labour-intensive sectors, these increases should be considered when preparing staffing budgets for the coming financial year.
Changes to Business Taxation
Several tax changes could affect businesses and self-employed individuals.
Trading Allowance
From 6 April 2027, the Trading Allowance will increase from £1,000 to £3,000, allowing individuals to receive up to £3,000 in qualifying trading and miscellaneous income tax-free each year.
This could be particularly relevant to individuals in the Omagh area earning income from small-scale trading activities or considering starting a business alongside their existing employment.
Capital Allowances
A 50% first-year allowance will be introduced for qualifying expenditure from 1 January 2027, while the main rate writing down allowance will reduce to 12% from April 2027.
Businesses planning to invest in machinery, equipment or other qualifying assets should review how these changes may influence their investment decisions.
Business Asset Disposal Relief
From 6 April 2027, the lifetime limit on gains qualifying for Business Asset Disposal Relief will fall from £1 million to £500,000.
This could affect business owners considering selling their company or retiring, making early financial planning particularly important.
Support for Innovative Businesses
A new Capital Gains Tax Founders’ Relief will provide a 10% rate on up to £10 million of qualifying lifetime gains for founders of high-growth, innovative companies.
Research and Development tax relief administration will also be simplified, potentially reducing paperwork for businesses investing in innovation.
Fuel Costs and Support for Rural Businesses
Transport and fuel costs remain significant considerations for many businesses operating in Omagh and the surrounding rural communities.
The Budget confirms that:
- The existing 5p fuel duty cut and freeze will continue until 30 June 2027.
- The Heavy Goods Vehicle road tax holiday will remain in place.
- The 3.7p reduction in red diesel duty will continue.
- Tariffs on fertiliser will be suspended until December 2027.
- Tariffs on kerosene heating oil will be temporarily suspended until December 2028.
These measures may provide some relief for local farmers, agricultural contractors, haulage operators, delivery businesses and other enterprises reliant on fuel and transport.
Support for Manufacturing and Energy Costs
Energy-intensive manufacturers in Northern Ireland could benefit from additional support through a locally administered version of the British Industrial Competitiveness Scheme.
The main rate of the Climate Change Levy on electricity will also be frozen from April 2028.
For manufacturing businesses facing significant energy bills, these measures could help reduce some of the financial pressures associated with production.
Changes to Personal Savings and Property Income
From April 2027, income tax rates on savings and property income will increase by two percentage points, with basic, higher and additional rates of 24%, 44% and 49% respectively.
These changes may be relevant to local landlords, property investors and individuals receiving taxable savings income.
The annual ISA subscription limit will remain at £20,000.
Changes to Import Tariffs
The Government will extend tariff suspensions on 269 goods, helping businesses importing certain products and materials manage costs.
A new application window will run from 11 November 2026 until 3 February 2027, allowing businesses to request additional tariff suspensions.
Local businesses importing goods for manufacturing, food production or other commercial activities may wish to examine whether these measures apply to them.
What Should Omagh Businesses Do Next?
With several changes scheduled to take effect during 2027, local businesses should begin reviewing their financial plans.
This may include reassessing staffing costs, examining tax liabilities, reviewing planned investment and exploring opportunities for business development.
For start-ups and smaller businesses, understanding the changes to trading allowances and investment incentives could also be particularly beneficial.
Omagh Enterprise encourages local businesses to stay informed, seek professional financial advice where necessary and consider how the Budget announcements may affect their future plans.
