Chancellor John Healey has set out a series of measures in today's Budget that could affect millions of households across the UK, touching on the cost of living, wages and taxes. The announcements include changes to energy bills and fuel duty, a boost to the state pension and an increase in the minimum wage, alongside rises in some taxes and duties.
The Budget is the Government's opportunity to explain how it plans to raise and spend public money, including through taxation and public spending. Mr Healey said his ambition was to move "money and power out of Westminster, and into every postcode around Britain". He added that millions of families would benefit from the changes, whether through savings on their weekly food shop or lower fuel costs.
Appointed Chancellor of the Exchequer by Andy Burnham on July 20, 2026, Mr Healey is responsible for overseeing the UK's public finances and economic policy.
Main changes announced in the Budget
Among the headline measures are a £100 payment for households in certain council tax bands, the removal of gas standing charges from energy bills and an extension of the fuel duty freeze. The Chancellor also announced a U-turn on plans to cut the ISA savings allowance.
Pensioners are set to receive a £500 boost to the state pension next year. The Government also plans to introduce a new pension tax allowance intended to ensure people whose only income is the state pension do not have to pay income tax on it.
Workers earning the minimum wage will also see their pay increase, with rates set to rise by 3.9% next April. However, the Budget will not benefit everyone. Duty on alcohol and tobacco products is set to increase, potentially adding to costs for people who drink or smoke. Gambling firms will also face higher taxes.
Tax on income from property and savings will rise by two percentage points. Under the announced changes, the rates will increase to 24% for basic-rate taxpayers and 44% for higher-rate taxpayers.
What John Healey said in his Budget speech
Delivering his Budget statement this afternoon, the Chancellor said the public finances were under significant pressure, with borrowing costs rising and the UK expected to spend an additional £14 billion on debt interest this year.
Addressing MPs, he said: "Those are the storms we face. We can't wish them away. We must choose the course we steer through them."
Mr Healey said tax increases for banks and gambling firms would provide the "breathing space" he had promised households and businesses on the high street. He also said the OBR had identified the war in the Middle East as the key driver behind the changes to its economic forecasts.
Setting out his ambitions for the country, the Chancellor said he wanted "to steer us through the global economic storms today, to chart a new course for Britain in the years ahead, to give people fresh hope for Britain's future".
