Autumn Budget 2026 live updates: Chancellor John Healey scraps gas bill standing charges, announces £100 energy bill payment and increases national wage

John Healey has announced a temporary 3 per cent tax levy on banks to help fund support for struggling households.

The Chancellor confirmed the levy will take effect in January and remain in place for 15 months, falling short of reports that banks could face a charge of up to 8 per cent.

He told MPs:

He described increasing taxes on banks as a ‘stealth tax’, arguing that the costs could be passed on to ordinary customers.

Tens of thousands of shops, restaurants and gyms will be exempt from business rates under plans unveiled today.

The Chancellor announced he would increase the threshold for Small Business Rate Relief from £12,000 to £18,000 for retail, hospitality and leisure businesses.

He told MPs:

Mr Healey also pledged to freeze rates in real terms for other businesses in those sectors for two years, preventing above-inflation increases.

The announcement follows plans to cut business rates by 20 per cent for pubs, clubs and music venues from next April.

John Healey has announced a tax raid on gambling firms to help fund a new support package for Britain’s struggling high streets.

The Chancellor confirmed that machine games duty will rise from 20 per cent to 25 per cent for higher-stakes gambling machines.

The increase forms part of a wider shake-up of gambling taxes, with the additional revenue earmarked for measures to support high street businesses.

Millions of low-paid workers are set for a pay boost after John Healey announced a 3.9 percent increase in the National Living Wage.

The Chancellor confirmed the rise in his Budget, taking the hourly rate above £13 for the first time.

The increase is higher than the current inflation rate of 3.5 percent, meaning workers on the minimum wage should see their pay rise faster than prices.

However, the move is likely to add to pressure on businesses already grappling with soaring energy bills, higher taxes and rising employment costs.

Millions of households will receive a £100 payment to help cover soaring energy bills this winter, John Healey has announced.

The Chancellor unveiled the £2.6billion scheme as part of his Budget, with 20 million households in council tax bands A to D set to receive the money directly into their bank accounts.

He told MPs:

Mr Healey said the payments would provide families with some much-needed ‘breathing space’ during the coldest months.

The cut to VAT on electricity will be extended to July, taking £50 off the annual price cap, Chancellor John Healey announced.

John Healey has pledged to eliminate Britain’s current budget deficit within three years while insisting Labour will honour its manifesto promise not to raise taxes on ‘working people’.

The Chancellor told MPs that the Government’s financial headroom would stand at £15billion in 2029-30 before rising to £22billion the following year.

He said:

Government borrowing is forecast to fall from 4.2 per cent of GDP this year to 1.8 per cent by 2030-31, while debt is projected to decline from 83.2 per cent to 81.7 per cent of GDP by 2031-32.

Households will no longer have to pay fixed daily charges on their gas bills from next year, John Healey has announced.

The Chancellor confirmed the Government will work with energy regulator Ofgem to abolish standing charges, which currently cost the average household more than £100 a year regardless of how much gas they use.

He told MPs:

John Healey sparked jeers from opposition MPs after accidentally suggesting his Energy Secretary had opposed plans for a major North Sea oilfield.

The Chancellor stumbled over his words while discussing the Government’s decision to approve the controversial Rosebank development last week.

He told the Commons:

His slip-up prompted loud jeers from the opposition benches.

Energy Secretary Miatta Fahnbulleh has previously spoken out against further oil and gas drilling but gave the green light to the Rosebank project last week.

John Healey said the Government was on track to meet its ‘stability rule’, which requires day-to-day spending to be covered by tax revenues by 2029-30, with fiscal headroom of £15billion.

The figure is down from the £23.6bn forecast in the Spring Statement in March.

Office for Budget Responsibility forecasts put UK growth at 1.2 percent this year, 1 percent next year, 1.6 percent in 2028, 1.8 percent in 2029, 1.7 percent in 2030 and 1.6 percent in 2031, Chancellor John Healey has said.

The conflict in the Middle East will cost Britain an extra £14billion in debt interest payments this year alone, John Healey has warned.

The Chancellor told MPs that soaring oil and gas prices caused by the war were driving up inflation and piling pressure on household finances.

Oil prices have jumped from around $70 a barrel to more than $100, while gas prices have almost tripled since February.

Mr Healey said the Office for Budget Responsibility now expects the Government to spend an additional £14billion servicing its debt this year.

He warned: