Overview
- Income tax thresholds will stay frozen until 2030–31, a move the OBR says will raise about £7.6bn in 2029–30 and pull hundreds of thousands more earners into higher bands.
- Labour will scrap the two‑child benefit cap from 2026, with the government citing an OBR estimate that around 450,000 children will be lifted out of poverty.
- The Budget targets wealth and asset income with a £12,000 cap on cash ISAs, higher rates on dividends, savings and property income, and a new high‑value council tax surcharge for homes above £2m.
- From 2029, pension contributions made via salary sacrifice above £2,000 will attract National Insurance, electric‑vehicle drivers will face a 3p‑per‑mile road charge from 2028, and remote gaming duty will rise to 40% in April 2026 as bingo duty is abolished.
- Average household energy bills will fall by £150 next year, fiscal headroom rises to roughly £22bn by 2029–30, and the OBR has apologised for publishing its outlook early and launched an inquiry as markets showed a muted reaction.