Budget 2026: Key points from John Healey’s speech - BBC News
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Budget 2026: Key Announcements
Chancellor John Healey has unveiled the government's financial plans in his Budget speech, the first under Andy Burnham's premiership. Here's a breakdown of the key points:
- Energy Bill Relief: A £100 payment for 20 million households in England with council tax bands A-D to offset rising energy costs, with equivalent support for Scotland, Wales, and Northern Ireland.
- Gas Bill Changes: Removal of standing charges from household gas bills, instead incorporating costs into the unit rate.
- VAT on Electricity Bills: The VAT cut on electricity bills is extended to July.
- Fuel Duty Freeze: Extending the freeze on fuel duty to July.
- Import Taxes: Removing import taxes on over 100 food products, including gherkins, marmalade, kerosene, and fertilisers.
- Mileage Rate for Drivers: Introducing a permanent 55p per mile tax-free mileage rate for up to 10,000 miles of work travel, with a rate increase for mileage above this threshold.
- Pensioner Tax Relief: A new tax-free allowance for low-income pensioners, ensuring those with income up to the full State Pension are tax-free.
- Minimum Wage: Increasing the legal minimum wage by 3.9%.
- Carer's Allowance: Adjusting the Carer's Allowance for those with higher earnings, introducing a taper rate instead of complete loss of allowance.
- Parental Pay: Extending parental pay rights to self-employed fathers and parents in same-sex couples.
- Bank Profits Surcharge: Increasing the surcharge on bank profits from 3% to 6% for 15 months, starting in January.
- Business Rates: Increasing the threshold for business rates in England from £12,000 to £18,000, exempting smaller businesses from rates.
- Social Housing Funding: Providing an extra £1 billion for social and affordable housing in England, bringing the total 10-year program funding to over £40 billion.
- Rough Sleepers: Allocating an extra £432 million to end rough sleeping by Christmas.
- Business Rates Retention: All business rates to be retained locally by 2028, with mayors keeping 20% of revenue.
- Income Tax Sharing: Starting in 2028, a share of income tax receipts will be allocated to mayors.
- Regional Spending Powers: Regional bodies and mayors in England to gain greater control over spending, with £285 million allocated in 2023.
- AI Investment: More than £600 million for AI-related projects, including £120 million for the UK's AI Security Institute and £100 million for a national AI Biosecurity Lab.
- Misogyny Fund: A £15 million fund to tackle misogyny in schools, workplaces, and communities.