Budget key points at a glance

October 28, 2026 154news Acacia

Budget 2026: Key points from John Healey’s speech - BBC News

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Budget 2026: Key points at a glance

By Becky Morton

Political reporter

Published 28 September 2026

Updated 5 hours ago

Chancellor John Healey has outlined the government's tax and spending plans in his Budget, the first under Andy Burnham's premiership. Here are the main takeaways:

  • One-off £100 payment for up to 20 million households in England in council tax bands A-D to help with rising energy bills. Equivalent funding for Scotland, Wales, and Northern Ireland.

  • Removal of standing charges from household gas bills in England, Scotland, and Wales, replacing them with costs added to the unit rate.

  • Extension of the VAT cut on electricity bills to July.

  • Elimination of the gas shipper obligation (green levy) from energy bills, shifting it to general taxation.

  • Further extension of the fuel duty freeze to July.

  • Removal of import taxes on over 100 food products, including gherkins, marmalade, kerosene, and fertilisers.

  • Permanent 55p per mile tax-free mileage rate for up to 10,000 business miles, with a rate increase to 35p per mile above that distance.

  • Launch in April of a new scheme offering a 25% discount on electricity bills for 10,000 energy-intensive businesses, with backdated payments for this year's energy costs.

  • Increase in the income tax rate on rental profits for landlords from 3% to 6% for 15 months, starting in January.

  • Reduction in the tax-free cash Isa (Individual Savings Account) limit to £12,000 for everyone over 65, and £10,000 for under-65s (plans to lower it further were scrapped).

  • Raising of the surcharge banks pay on their profits from 3% to 6% for 15 months.

  • Increase in the threshold for business rates in England from £12,000 to £18,000, removing rates for properties valued below this amount.

  • Elimination of business rates relief for adult games centres and vape shops.

  • Rise in taxes on gambling machines with stakes over £1 to 25%.

  • Holding online marketplaces like Amazon, eBay, and Temu responsible for collecting VAT on sales through their platforms.

  • Increase in the new state pension by £488 a year (3.9%) under the triple lock policy, with the old basic state pension rising by £374.40.

  • Introduction of a new tax-free allowance for low-income pensioners, ensuring those with income up to the full new state pension value do not pay income tax.

  • Rise in the minimum wage by 3.9% in April.

  • Changes to Carer's Allowance, preventing unpaid carers from losing the entire allowance if they earn more than £204 a week after tax.

  • Extension of parental pay to self-employed fathers and parents in same-sex couples.

Your pay, energy bills, and savings: How the Budget affects you

  • The one thing that didn't change will affect your pay the most

Image:

  • Rasid Necati Aslim/Anadolu via Getty Images

Image caption:

  • From April 2027, landlords will face a further 2% income tax on rental profits.

Additional notes:

  • A further £432m has been added to the initiative to end rough sleeping by Christmas.

  • New scheme to assist first-time buyers in England purchasing a home, offering government-backed loans to households earning less than £110,000 or £140,000.

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