The chancellor is poised to add 2p to the price of a pint after unveiling cuts to the cost of supermarket staples including baked beans, gherkins and chocolate ahead of his major Budget announcement this week.
On Wednesday, John Healey is expected to increase alcohol duty in line with Retail Prices Index (RPI) inflation, despite industry bodies urging the chancellor to drop plans they say would hurt “struggling” businesses.
He also announced the removal of import tariffs on over 100 products, as Andy Burnham pledges to deliver “breathing space” for families and businesses in the first Budget under his leadership.
The move is one of a series of so-called “everyday fixes” announced ahead of Wednesday, and comes alongside changes to parental pay and carers allowance.
Products expected to see tariff cuts also include jams, marmalades, garlic and toffees, as well as kerosene and fertilisers.
Meanwhile, the chancellor announced he will make the 55p per mile tax-free mileage rates permanent, and that parental pay will be extended to more than 150,000 additional parents per year, including self-employed dads and partners.
The prime minister said the changes will “make life a little easier” for Britons.
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Key Points
- Chancellor set to add extra 2p to price of a pint
- What time does the Budget 2026 announcement start?
- Burnham opens up biggest lead since general election after 100 days in office
- Products included in the chancellor's tariff cuts
- Stocks rally before Budget and interest rate calls
In pictures: Chancellor takes morning run with BBC podcast host ahead of first budget speech
08:41 , Harriette Boucher
Farage: Burnham has no mandate to reopen Brexit debate
08:33 , Harriette BoucherAndy Burnham has no mandate to reopen arguments on Brexit, Nigel Farage has said, as he hit out at the prime minister’s call for an “honest discussion” about a return to freedom of movement.
The prime minister’s comments have fuelled questions about the parameters around his vision for a deepening relationship with Brussels.
He has said he is not proposing any changes in this parliament that would move away from the red lines in Labour’s manifesto.
The Reform UK leader told BBC Radio 4’s Today programme: “Five months ago, Andy Burnham says … I’m not going to reopen these arguments.
“Two-and-a-half years ago, a Labour government got a massive majority in Parliament saying we will not be re-entering the single market, the customs union, or opening up a debate on the free movement of people.
“What I am saying is this: this prime minister has no mandate, and to hear that his officials are negotiating in Brussels already is really very, very poor indeed.”
Mr Burnham is meeting EU chiefs next month for talks with the bloc that continue his predecessor’s push for closer tie
Conservatives hit out at PM’s ‘every fixes’
08:27 , Harriette BoucherThe Tories have described Andy Burnham’s “everyday fixes” as an “insult to families hammered by Labour’s tax rises”.
Shadow chancellor Andrew Griffith said Labour is “not serious about the challenges facing our country” as he hit out at the measures unveiled by the chancellor ahead of the Budget.
“Rampant borrowing, soaring taxes and an utter inability to cut spending mean inflation has already wiped out the benefits of Burnham's 'everyday fixes’,” he said.
“Shoppers face rising costs at the till and families are struggling to make ends meet, but Burnham's plan is cheaper gherkins. This is an insult to families hammered by Labour’s tax rises.”
What time does the Budget 2026 announcement start?
08:16 , Harriette BoucherChancellor John Healey is poised to deliver his first Budget on Wednesday, amid fevered speculation surrounding potential tax rises or spending cuts to fill a growing black hole in the public finances.
The Budget is one of the biggest events in the UK's political and economic calendar, when the chancellor sets out the government's plans for taxation, public spending and the wider economy. Delivered in a speech to MPs in the House of Commons, the Budget outlines how the government intends to raise and spend money.
Former defence secretary Mr Healey is under pressure to raise taxes or find billions of savings to help ramp up Britain’s military spending, whilst also ensuring the string of pledges set out by the prime minister during his first weeks in office are fully funded.
Mr Healey is expected to outline the proposals at approximately 12.30pm on Wednesday in the Commons, immediately after Andy Burnham has finished his weekly despatch box showdown with Kemi Badenoch at Prime Minister’s Questions.
Read more:
In pictures: John Healey prepares for his first Budget from his kitchen
08:11 , Harriette Boucher
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Britain not 'powerless' to global economic pressures
08:06 , Harriette BoucherThe government is not “powerless” to the global economic pressures facing Britons, the business secretary has said.
Speaking to Sky News about the government’s “everyday fixes” to help people with the cost-of-living crisis, Jonathan Reynolds said: “Yes, the pressures are strong from Ukraine or what’s happening in Iran, between Iran and the US.
“But we’re not powerless. We can make changes as we’re announcing today that will make a difference to people’s lives, and we can have some confidence in the direction of the UK economy.”
The “everyday fixes” set to feature in Wednesday’s Budget include a higher tax-free mileage allowance and cutting tariffs on a a range of foods.
Labour accused of misleading public over defence spending
07:50 , Harriette BoucherLabour has been accused of misleading the public by including billions of pounds in intelligence spending in the defence budget.
It is now facing a probe after former Tory defence secretary Sir Ben Wallace complained to the UK Statistics Authority.
He said the spending made it seem as if the government was on track to meet its Nato commitments, but the rules do not allow funding for security services to qualify.
In a letter to the watchdog, Sir Ben said: “As the world gets more unstable and our allies start spending real cash increases in their budgets, Britain seems to be falling behind.
“Telling the men and women of the Armed Forces and the public that they are spending more while in real terms day-to-day funding on our Armed Forces is being cut is an insult to them.
“It fools no one inside defence, our allies and our enemies.”
Chancellor set to add extra 2p to price of a pint
07:36 , Harriette BoucherThe price of a pint will rise by 2p when the chancellor hikes alcohol taxes on Wednesday.
John Healey is poised to announce an increase in alcohol duty at the Budget, which will be line with Retail Prices Index (RPI) inflation, which is set at 3.9 per cent.
It would add 2p to the duty on a pint, around 10p to 12p on a bottle of wine, and 35p to a bottle of 37.5 per cent gin.
Several industry groups had urged the chancellor to drop plans to increase alcohol taxes.
Miles Beale, chief executive of the Wine and Spirit Trade Association, said the government should be “supporting not squeezing” the British drinks sector.
“The Chancellor cannot control global fuel prices, but he can put the brakes on relentless and punishing alcohol tax increases, which have consistently failed to raise revenue. He needs to change the record – because it’s broken,” he said.
“Labour should not be continuing a failing tax regime that was designed and started by a Conservative government. Wine and spirit producers and retailers across the country are struggling to absorb the hefty duty increases and consumers can’t afford them. Another tax rise will simply mean that more businesses will fold.
“The WSTA continues to call for Government to recognise the immense pressure consumers, businesses, pubs and restaurants are under and put a stop to the tax raids.”
Chancellor: 'Everyday fixes are small part of giving families breathing space'
07:00 , Dan HaygarthJohn Healey said: “Today’s everyday fixes are just a small part of what we are doing to give families a bit of breathing space.
“Conflict in the Middle East and Europe is hitting families here at home through higher everyday costs.
“We can’t control global events, but we can act where we can make a difference.”
Watch: UK households urged to prepare for emergencies and ‘attacks’ in new government guidance
06:30 , Dan HaygarthIn pictures: Burnham meets with Healey with Budget to come this week
06:30 , Dan Haygarth
In full - Burnham: Brexit is to blame for Britain’s small boats crisis
05:30 , Dan Haygarth
Burnham: Brexit is to blame for Britain’s small boats crisis
Burnham wants to give every rough sleeper an offer of help by year’s end
04:30 , Dan HaygarthAndy Burnham said he wanted to give “every single person” sleeping on the streets an offer of help by the end of this year.
It comes as the Budget is set to deliver a £432-million boost to help ensure homeless people are off the streets by Christmas.
Speaking at a rough sleeping summit in Downing Street, Mr Burnham said: “Just think how it will feel if we get to the end of this year… and we know at a national level, that we did give every single person an offer of help this end of year.”
He went on: “I am asking you all from the front here today. Please, we must turn this into something tangible for everybody.
“It doesn’t mean that everybody will be able to take up the offer and everybody will be able to have their life turned around.
“But the fact that we give them that offer will put enough hope in their heart that something will be coming and something will change as we go into the new year.
“That’s our collective mission, everybody.”
Ministers unveil five ‘everyday fixes’ to help with living costs ahead of Budget
03:30 , Dan Haygarth
Ministers have unveiled five “everyday fixes” to help people with the cost-of-living crisis ahead of Wednesday’s Budget.
A higher tax-free mileage allowance will be made permanent, and tariffs on a range of foods will be slashed to bring down their prices, the chancellor and prime minister have announced as part of a series of steps to help with heightened living costs.
Andy Burnham also said the government will do more to give people and businesses “breathing space” at Wednesday’s fiscal event, beyond the measures he and John Healey have already announced.
Under the raft of measures revealed on Tuesday, and which are expected to be included in Wednesday’s Budget, the chancellor will lock in the 55p mileage rate for those who have to drive for work, for the first 10,000 miles.
Rates above that will be raised from 25p to 35p, with the government hoping the overall package will help a total of three million employees and self-employed people.
The government is also removing tariffs on more than 100 products, including favourite foods such as baked beans, chocolate and gherkins.
This will save households some £21 on food shopping over the course of the year, according to the Treasury.
Tariff cuts on fertilisers are meanwhile aimed at farmers, while a tariff cut on kerosene will help homes which use the fuel as a heating oil.
Ministers also plan to extend parental pay to more than 150,000 parents each year, including self-employed fathers who had previously missed out.
A cliff edge on carer’s allowance will be ended, with the government instead tapering away £1 of the benefit for every £1 earned above the weekly limit.
Stocks rally before Budget and interest rate calls
02:30 , Dan HaygarthStocks in London started the week on the front foot, ending Monday in the green, as investors looked ahead to the autumn Budget and a busy week of central bank interest rate calls.
In London, the FTSE 100 index ended up 76.97 points, 0.7 per cent, at 10,767.33. The FTSE 250 ended 263.86 points higher, 1.1 per cent, at 24,501.25, and the AIM all-share advanced 6.51 points, 0.9 per cent, at 753.18.
In London, investors are looking ahead to Wednesday’s autumn Budget at which chancellor John Healey is expected to announce an investment boost, and modest tax rises, as he seeks to placate the City, and keep backbench MPs on side.
“Wednesday’s Budget will be the main event for UK investors, with the reaction in bond and currency markets likely to matter more than the individual measures announced,” said Tom Stevenson, investment director at Fidelity International.
“With long bond yields in the UK approaching 6%, the most important job for the chancellor, John Healey, will be to reassure investors about the outlook for borrowing, growth and the public finances,” he added.
The Financial Times reported that Mr Healey is preparing to announce £20.4 billion in additional funding for the country’s state-backed business lender and infrastructure bank.
The funding, to be provided over roughly five years, is expected to create and support 100,000 jobs in sectors including artificial intelligence, defence and green energy by 2035, according to the Treasury.
Watch: I want to see the UK to rejoin the EU in my lifetime, Burnham says
01:30 , Dan HaygarthProducts included in the chancellor's tariff cuts:
00:30 , Dan Haygarth- Garlic
- Gherkins
- Citrus jams, marmalades and pastes
- Throat pastilles and cough drops
- Boiled sweets
- Toffees, caramels and similar sweets
- Plant-based beverages
- Chocolate-coated waffles/wafers
- Kerosene
- Fertilisers
Healey should move focus to cheap power over net zero at Budget, Blair says
Monday 26 October 2026 23:30 , Dan HaygarthChancellor John Healey should use the Budget to change the focus of Britain’s energy strategy from net zero to providing a cheap supply to consumers, Sir Tony Blair’s influential think tank has said.
The Tony Blair Institute for Global Change (TBI) also said the Government should use its forthcoming 10-year plan to lay out a series of reforms aimed at making energy cheaper in the UK.
Energy prices in Britain are among some of the highest in Europe, and the G7 group of countries, in part because of a significant dependence on natural gas, which often sets the overall price of electricity.
Gas prices have risen because of the wars in Iran and Ukraine, which has had a knock-on effect on energy prices.
In its latest report, released on the eve of the Budget, Sir Tony’s think tank has said the Government should replace its Clean Power 2030 strategy, which aims to decarbonise the grid, with a new “cheaper power mission”, the central aim of which is to bring down the price of energy.
The Budget could be the start of this, the TBI said, by introducing a programme which rewards businesses which use electricity at off-peak times, and in areas which do not place huge demand on the power system.
Burnham opens up biggest lead since general election after 100 days in office
Monday 26 October 2026 22:30 , Dan HaygarthLabour continues to increase its lead in the polls as the party sees its highest ratings of this parliament, according to a new survey.
The latest figures from Ipsos show that Andy Burnham’s party is now eight points clear of the Conservatives for voting intention, at 32 points to 24. Reform UK is placed third on 20 points in the poll.
Read more:
UK poll tracker: Burnham opens up biggest lead since general election after 100 days
