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🚨 SUMMARY: John Healey's first Budget
SUPPORT FOR BILLS:
- Eligible households in council tax bands A–D will receive a £100 cash payment fr...
🚨 SUMMARY: John Healey's first Budget
SUPPORT FOR BILLS:
- Eligible households in council tax bands A–D will receive a £100 cash payment from January to help with energy bills
- The cut to VAT on electricity bills will be extended until July 2027
- Gas standing charges will be abolished by the end of 2027 or soon after, with costs shifted to gas unit rates
- Targeted energy debt relief will be introduced to help households struggling with energy arrears
- Local authorities in England will receive an extra £100m to support households on benefits facing severe energy pressures
- Energy-intensive manufacturers will receive a 20–25% electricity discount from April 2027
- The 5p fuel duty cut will be extended until 1 July 2027
- The 3.7p-per-litre red diesel duty cut will be extended until 1 July 2027
- The HGV vehicle excise duty holiday will be extended until 1 July 2027
- £100m will be invested over two years to reduce the cost of local, lower-powered public EV chargers
TAX:
- Tax on savings income will rise by a further 2% from April
- Tax on property income will rise by a further 2% from April
- The tax on bank profits will rise from 3% to 6% from January 2027 to March 2028
- Machine Games Duty will rise from 20% to 25% on machines with stakes over £1 from April
- Business rates relief will be removed for vape shops and adult gaming centres from April
- Online marketplaces will have to collect VAT on sales by UK businesses making over £90,000 from October 2027
- Certain overseas businesses will have to account for UK VAT on services sold to UK businesses under tightened rules
- Certain UK property income and gains earned by foreign sovereign investors will become subject to UK tax following a consultation
- From April 2028, tax rules will change to stop shareholders from using certain methods to pay less tax on money taken out of their companies
- HMRC will gain new powers to seize lower-value unpaid tax directly from the bank accounts of people who can afford to pay but fail to do so
- The business rates threshold for retail, hospitality and leisure in England will rise from £12,000 to £18,000 - meaning 70,000 businesses will pay no business rates
- Alcohol duty will increase in line with inflation from February 2027, potentially increasing prices for beer, wine and spirits
- Small breweries and cider makers will receive £10 million a year in extra tax relief to help reduce their costs
- Rachel Reeves' plans to cut the annual cash ISA allowance have been scrapped - it will remain at £20,000 rather than falling to £12,000
- From April 2027, the amount of profit eligible for tax relief when selling a business will be reduced from £1 million to £500,000
- From April 2027, eligible business founders selling their businesses will pay just 10% Capital Gains Tax on up to £10 million in profits over their lifetime
WAGES, INCOME AND COST OF LIVING:
- Import tariffs will be temporarily removed on more than 100 food and drink products from 26 November 2026 until December 2028
- Tariffs on heating kerosene will be suspended until December 2028
- Tariffs on specified fertilisers will be suspended until December 2027
- The tax-free allowance for pensioners relying solely on the state pension will be increased to match the rise in the pension to £13,097
- The minimum wage will rise to £13.21 for over 21s, £11.27 for 18 to 20 year olds and £8.31 for under 18s and apprentices - all rises of 3.9%
- Eligible self-employed fathers, partners and adopters will gain access to parental pay from April 2029
- The tax-free mileage allowance for employees using their own cars for work will be made permanent: 55p per mile for the first 10,000 business miles and 35p (from 25p) per mile above that
- Carers earning over £204 a week after tax will no longer automatically lose their entire Carer’s Allowance; a tapered reduction will be introduced from 2029 instead (lose £1 for every extra £1 earned)
HOUSING:
- £4.7bn will fund the new Your First Home scheme to help around 70,000 households buy a home, with deposits as low as 2.5% and interest-free Government loans for the first five years, starting April 2027
- A new ISA for first-time buyers will launch in April 2029. You can save up to £4,000 a year, and for every £100 you save, the Government will add £25, up to £1,000 a year, to help you buy your first home costing up to £450,000
- From tomorrow, people with an existing Lifetime ISA will face a lower penalty when using their savings to buy a home costing over £450,000. The penalty will drop from 25% to 20%
- An extra £432m will be provided over 2027–28 and 2028–29 to help rough sleepers get off the streets
- An extra £1bn will go towards social and affordable housing in England, taking funding for the 10-year programme to more than £40bn
DEFENCE:
- A new target date of spending 3% of GDP on defence in 2030
- The £298 billion Defence Investment will be "fully funded" through "capital reprioritisation across Whitehall"
- £10bn in economic and military support for Ukraine
DEVOLUTION AND LOCAL INVESTMENT:
- Mayors in England will begin retaining 20% of business rates from April 2027 with the aim of allowing all business rates to be retained locally by 2030
- Mayors will receive a share of income tax receipts from April 2028
- The Government will work with mayors to develop a £1.5bn borrowing facility, expected to be available from 2028, to help fund larger local projects
OTHER:
- A new £15m fund will tackle misogyny in schools, workplaces and communities
28.10.26
UK budget today
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