Overview
- Chancellor Rachel Reeves confirmed the scrapping of the two-child benefit cap from next April, with the OBR estimating 450,000 fewer children in poverty nationwide and campaigners citing around 70,000 affected in the North East.
- Households will get a £150 reduction in energy bills as national insurance and income tax thresholds are frozen for an extra three years beyond 2028, pulling more people into higher bands over time.
- The Budget introduced a council tax surcharge on high-value homes, starting at £2,500 annually for properties over £2 million and rising to £7,500 above £5 million, aimed at raising £400 million.
- Devolution measures include power for the North East mayor to introduce a visitor levy and £96 million for a Local Growth Fund that local leaders say could back projects such as Crown Works and Gateshead Quays.
- Key regional transport priorities—including the Leamside Line, the A19 Moor Farm upgrade, Metro fare support and Northern Powerhouse Rail—were left undecided, with ministers promising further announcements in 2026.