Andy Burnham and John Healey will deliver their first Budget in just over two weeks' time. Several financial policies have already been confirmed ahead of the announcement, including measures first introduced by predecessors Sir Keir Starmer and Rachel Reeves.
The following changes are set to go ahead after the Budget 2026, with details based on what has been confirmed to date. Further announcements and additional details are expected on the day.
Cash ISA limit reduced
HM Treasury has confirmed that the Cash ISA cut first announced by Rachel Reeves will go ahead from April 2027. Under-65s will only be able to deposit £12,000 a year into a Cash ISA, down from the current £20,000 limit. Over 65s will retain the full £20,000 limit.
State pension tax exemption and triple lock
State pensioners with no other income aside from their DWP state pension benefit will not pay tax on any income exceeding the £12,570 tax threshold. This policy, carried forward by Andy Burnham, means that if a pensioner receives £13,000 from their state pension, the £430 that would have been taxable at 20% will not be taxed. However, any other income loses the exemption.
The state pension is set to increase in the Budget 2026. Although Burnham announced plans to scrap the triple lock and replace it with a system closer to a double lock, that change will not happen until 2030 and potentially only if Labour win the next election. The exact increase for April 2027 will be confirmed at this Budget.
£2 bus fare cap
The £2 bus fare cap, announced by Andy Burnham at the start of his premiership, will come into force from January 2027, replacing the existing £3 cap. A single bus fare can cost no more than £2 outside of London.
