Healey unveils £100 for energy bills and bank tax in first Budget

Image source, Press AssociationByBrian WheelerPolitical reporterPublished28 October 2026Millions of households will get £100 to help with soaring energy bills to be paid for by a tax on bank profits, John Healey has announced in his first Budget.

The chancellor said he wanted to give hard-pressed families "breathing space now" and "hope for the future" as the UK economy is battered by "global economic storms".

He also unveiled tax breaks to boost high street businesses - but confirmed that many big decisions, including on defence spending and welfare, will not be made until next year.

Conservative leader Kemi Badenoch said Healey's plans were "not bold enough" and the government was "overspent, overborrowed, overtaxed and drowning in an out-of-control welfare system".

In an hour-long speech to a packed House of Commons, with Prime Minister Andy Burnham and other frontbench colleagues cheering him on, the chancellor unveiled a string of measures aimed at cutting the cost of living.

Gas standing charges in England, Scotland and Wales, to be scrapped during 2027 "or as soon as possible after". These fixed daily fees will be shifted onto the price of each unit of energy, meaning heavy gas users will face higher bills

Increasing minimum wage rates by 3.9% in April, although there will be no progress on narrowing the gap between rates for older and younger workers

Healey increased the tax on the profits of big banks from 3% to 6%, which will last from January next year to April 2028, and increased taxes on high-stakes gambling machines.

As part of a package to help business, Healey increased the point at which High Street shops in England start paying business rates from £12,000 to £18,000, with vape shops and adult gaming centres excluded from the relief.

But he had little scope for big giveaways as the public finances remain stretched, with the UK set to spend £14bn more on debt interest payments this year.

Income tax thresholds will remain frozen and the tax on income from savings and property rental will rise to 24% for basic rate taxpayers from April 2027, after it had been scheduled to go up to 22%.

But a cut to the cash ISA allowance from £20,000 a year to £12,000, announced last year by Healey's predecessor Rachel Reeves, will be axed.