Chancellor John Healey Delivers First UK Budget
Chancellor John Healey is set to outline Labour’s tax and spending plans in his first Budget speech, delivered alongside Prime Minister Andy Burnham. The government has run an unusually tight ship to prevent policies from leaking out ahead of time, but key measures are expected to focus on giving households breathing space amid ongoing cost of living pressures. The economic backdrop includes the UK performing as the fastest-growing G7 country this year, though growth is expected to slow as energy price shocks and inflation weigh on households and businesses. According to the BBC, the speech will be broadcast live and followed by a response from Leader of the Opposition Kemi Badenoch.
Energy Bills and Cost of Living Support
Household energy bills are facing their biggest rise in four years, with typical annual bills forecast to jump by £276 in January. To address this, Healey has announced that fixed daily standing charges for household gas bills—averaging £108 a year—will be removed for about 23 million homes. Regulator Ofgem aims to deliver this change in 2027 or as soon as possible after. However, this will be offset by higher unit costs for gas, resulting in an estimated average saving of £45 a year for three-fifths of households. Lower gas users will save more, while higher users could see larger bills. Additionally, the government plans to remove tariffs from 100 food items and keep fuel duty frozen while maintaining the 5p fuel duty cut introduced in 2022.
Housing and First-Time Buyer Support
The Budget will contain further details on Burnham’s planned Your First Home scheme, designed to help first-time buyers in England get onto the property ladder. The scheme allows eligible buyers to purchase a new-build home with a deposit of 2.5%, supported by a loan worth 20% of the property’s value. Eligibility thresholds are set at combined incomes of £110,000 outside London and £140,000 in the capital.
Minimum Wage and Pensioner Adjustments
A minimum wage increase will be announced, though 18- to 20-year-olds are set to see smaller increases than in previous years as their pay aligns with the rate for employees aged 21 and over. Meanwhile, the full state pension is expected to rise above the current £12,570 threshold to £13,036.40. Because this increase would otherwise push one million people into paying income tax on their pension, Healey will explain how these pensioners will be shielded through a new personal allowance.
Bank Taxes and Business Measures
Bank executives anticipate higher taxes, with expectations that Healey could reverse a previous Conservative cut to the profit surcharge—lowering it from 8% to 3%—or raise the levy on bank balance sheets. For wider businesses, online retail giants like Amazon and eBay are expected to be made responsible for collecting tax owed by third-party traders using their platforms. The raised funds will support cutting business rates for high street shops by raising the threshold for small companies from £12,000 to £18,000. Ministers also plan to slash pointless paperwork to save businesses up to £800 million.
What Happens After the Speech
Following the speech, the Office for Budget Responsibility (OBR) will publish five-year economic forecasts. MPs will then debate the measures for three days before voting. Approved tax changes can take effect immediately, though a formal finance bill must be passed to make them permanent. Source: BBC News.
Source: Energy bill help, minimum wage rise and bank taxes – what could be in the Budget? (source-feed timestamp 2026-10-28T07:39:54+00:00). AI-assisted report based on the cited linked article and its RSS feed; details were not independently verified.
Related coverage
Context matters. Read about our editorial standards and corrections policy.
Join the conversation