Chancellor John Healey has delivered his first Budget, scrapping a planned fuel duty increase and offering £100 to millions of households to help with energy bills. He described the package as a "Budget for the worker, for the sole trade, for the parent," drawing criticism from Conservative leader Kemi Badenoch.
Fuel duty and energy support
The 5p cut to fuel duty, which was due to end on December 31, will be extended until July 2027. The energy bills support package will cost £2.6bn, with around 20 million households in council tax bands A to D receiving £100 from the Government this winter.
Devolution and regional investment
The Government will devolve business rates and some income tax revenue to allow regions like the North East to invest in large infrastructure projects. All business rates will be kept by local administrations by 2030, with a fifth going to mayors from next year. From 2028, a "share" of income tax receipts will go to mayors, at the same time as elected representatives can introduce an overnight visitors levy.
Two promises were made for Gateshead: the UK's next International Investment Summit will take place in the town next year, and the Chancellor announced a loan for the development of the Gateshead quays.
Wages, taxes, and housing
The minimum wage for both under and over-21s will rise by 3.9%, ending the trend of hiking pay for those aged 18 to 20 on the national minimum wage more than older workers on the national living wage. The bank tax will increase 3% for 15 months, and increases were announced on some gambling machines.
A new British data centre covenant was announced, with tests data centres must meet. Data centres, such as those planned in Northumberland, will have to employ local people, invest in local communities and protect water supplies. The Your First Home equity loan scheme for first-time buyers will be funded with £4.7bn of Government-backed lending.
Budget speech length
Healey's Budget speech in the House of Commons lasted 56 minutes, shorter than both Budget speeches delivered by his predecessor Rachel Reeves, which ran for 77 minutes in October 2024 and 64 minutes in November 2025.
