Budget 2026: “Breathing Space Now, Hope for the Future”
Chancellor John Healey has unveiled his first Budget, setting out measures to support households and businesses facing rising energy costs.
What’s changing?
Household support: A £100 Energy Payment this winter for eligible households in Council Tax bands A–D in England.
Energy and fuel: The VAT cut on domestic electricity and the 5p Fuel Duty cut extended to July 2027.
Support for businesses: Expanded Small Business Rate Relief, helping around 70,000 retail, hospitality and leisure businesses pay no business rates.
Other tax measures announced
• A temporary doubling of the Bank Corporation Tax Surcharge.
• Higher tax rates on property and savings income from April 2027.
• A halving of the lifetime limit for Business Asset Disposal Relief.
• Changes to business investment allowances, alongside confirmation that the planned cash ISA limit cut will not go ahead.
The Chancellor says the Budget aims to provide immediate relief while beginning wider energy reforms to reduce bills in the future.
For further information take a look at our Autumn Budget summary.
If you are affected by any of these changes, please contact Honey Barrett and one our team will be happy to help.
