Overview
- Chancellor John Healey delivered his first Budget on Wednesday, October 28, 2026, framing it as short-term 'breathing space' for households and the start of longer-term action to cut energy costs.
- The Treasury confirmed that fixed daily standing charges on household gas bills will be abolished from 2027 or as soon as practicable after that date, a move industry estimates say could cut typical bills by roughly £22 to £50 a year.
- Several other measures have been widely reported but remain to be fully costed, including a freeze to planned fuel duty rises, a near‑4% rise in the National Living Wage for adults, higher tax-free mileage rates, and an increase in the business rates threshold.
- The government plans to raise targeted revenue rather than pursue broad tax hikes, with reports pointing to a bank windfall levy and tighter rules for online marketplaces to collect tax, a choice that has prompted concerns in the City about competitiveness.
- Ministers stressed they would stick to Labour's fiscal rules because rising inflation and borrowing costs have eroded fiscal headroom, and the Office for Budget Responsibility will publish updated forecasts with formal costings that will show how the package is funded.