John Healey says he will scrap standing charges on gas bills as part of cost of living measures in his first Budget later today.
Standing charges on gas bills, which cover the cost of delivery to homes and businesses, will be scrapped from 2027 “or as soon as possible after”, the Treasury said on Wednesday morning. The move could reportedly save households between £22 and £50 per year.
But the chancellor is set to make the rest of the Budget a relatively modest affair, as he plans to put off major decisions on tax and spending until next year, reports suggest.
It comes after the chancellor announced he will to add 2p to the price of a pint after unveiling cuts to the cost of supermarket staples including baked beans, gherkins and chocolate.
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.
The prime minister said the changes will “make life a little easier” for Britons.
Read MoreWhat time does the Budget 2026 announcement start?
Full list of ‘family favourite’ food items targeted for price cuts in Budget 2026
What is the state of the UK economy heading into the Budget?
Key Points
- Chancellor says he will scrap gas standing charges for millions
- Healey vows to give Britons ‘fresh hope for future’ in first Budget
- Healey ‘to announce UK minimum wage will rise by nearly 4%’ in new boost for workers
- What can we expect in today's Budget?
- Will today's Budget help bills go down?
- Cut benefits to fund defence, say majority of Britons in new poll ahead of Budget
What time is the Budget 2026 announcement?
07:57 , Harriette BoucherChancellor John Healey is poised to deliver his first Budget today, 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.
Meanwhile, soaring borrowing costs because of the Iran war and weaker growth has wiped nearly billions off the government's fiscal headroom.
UK government borrowing rose by more than expected to £24.5 billion for last month, underscoring the constraints in the public finances ahead of the Budget.
Read more:
What time is the Budget 2026 announcement?
Abolishing standing charges amounts to 'tinkering'
07:54 , Harriette BoucherJohn Healey’s move to scrap standing charges on gas bills amounts to “tinkering”, the Greens have said.
A party spokesperson said: “Abolishing standing charges is more tinkering from a government that is failing to take the bold action needed to end the cost-of-living crisis.
“Energy bills have skyrocketed in recent years and are set to rise by hundreds of pounds again this winter.
“‘Hope’ is an easy thing to promise but will not be delivered by a business-as-usual Budget.”
'Vulnerable' people could still be made to pay standing charges
07:43 , Harriette BoucherA fuel poverty group has said the government has “serious questions” to answer around who will have their standing charges scrapped over fears vulnerable people will still have to pay.
Simon Francis, coordinator of the End Fuel Poverty Coalition, welcomed the the Treasury’s announcement this morning, saying “it will bring real relief to many low-income households who use very little energy and for prepayment customers it could stop debt building up in the summer months.”
He added: “But despite the positives of the gas standing charges proposal, millions of households won't see a saving. This means ministers have serious questions to answer about who they are and, if they are vulnerable or on low incomes but have high energy needs, how they will be protected.
“The Treasury's figures also assume nobody changes how much energy they use, so they tell us nothing about people who already can't afford to heat their homes safely. We need proper modelling and monitoring of whether a higher unit cost will deter them from using the amount of energy they need to stay safe.
“Disabled people, those with long-term health conditions and families with young children often have no choice but to use more energy and many already miss out on the Warm Home Discount. Support for them must be in place before this change happens, not promised in due course.”
PM 'determined to reform broken energy market'
07:34 , Harriette BoucherAndy Burnham has said he is “determined to reform our broken energy market” after the Treasury announced that standing charges on gas bills would be scrapped.
The prime minister said it was about “basic fairness” and giving people more control.
Standing charges are due to abolished next year for around 23 million homes.
John Healey said: “Gas standing charges are unfair and outdated so I am scrapping them to give millions of households a bit of breathing space.
“My Budget will draw a line in the sand on an energy policy that has failed British billpayers for years, letting extra costs on bills pile high and leaving households even more exposed to global shocks.”
Watch: Martin Lewis visits Number 11 Downing Street before Budget announced
07:29 , Harriette BoucherBreaking: Chancellor says he will scrap standing charges on gas bills ahead of Budget
07:02 , Tom BarnesStanding charges on gas bills will be scrapped from next year for around 23 million homes, the Treasury has announced.
The charges are a fixed daily fee added to bills, regardless of how much gas a customer uses, and cost around £108 per year for a typical household.
The Treasury said Chancellor John Healey will today ask regulator Ofgem to remove standing charges “in 2027 or as soon as possible after”.
What we don't know about the chancellor's Budget
07:00 , Nicole Wootton-CaneWe have seen plenty of rumours and speculation about what chancellor John Healey may choose to include in his inaugural Budget as the government seeks to balance high living costs with increasing demands on national security and turmoil caused by the Iran war.
In announcements leading up to the Budget, the chancellor confirmed he will slash tariffs on a range of popular foods including chocolate and gherkins, but add 2p to the price of every pint.
But Mr Healey has yet to reveal how he plans to meet defence spending commitments - notable after he resigned from his role as defence secretary earlier this year in a row over spending.
It is also unclear which taxes he may choose to raise and how.
The UK is also set to miss its target of spending 0.3 per cent of gross national income on international aid unless Mr Healey announces changes, according to a new report.
When will the Budget be announced?
06:00 , Nicole Wootton-CaneJohn Healey will deliver his Budget to the Commons later today as he outlines the first complete fiscal plan of Andy Burnham’s government.
He 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.
We’ll be bringing you analysis and commentary throughout the day from our team in Westminster.
What can we expect in today's Budget?
05:00 , Nicole Wootton-CaneJohn Healey will announce the first Budget of Andy Burnham’s premiership today as the government seeks to reassure Britons amid the ongoing cost of living crisis.
The chancellor is set to announce a raft of policies aimed at bringing costs down for everyday households including slashing tariffs on a range of popular foods and raising the minimum wage by nearly four per cent.
But it comes against a tricky economic backdrop for Mr Healey as Britain agreed to pay the highest interest rate to borrow since 2008 on the eve of his announcement.
Former defence secretary Mr Healey is also under pressure to 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.
You can follow all the latest developments from the day in this blog.
Editorial: Even a ‘boring’ Budget can be a risk, chancellor
04:00 , Nicole Wootton-CaneAll the signs are that John Healey’s first Budget on Wednesday will be a very modest event indeed. Without precise measures to bring down the cost of living, it could leave the government looking rudderless.
Even a ‘boring’ Budget can be a risk, chancellor
PM promises end of carers ‘cliff edge’ in cost-of-living package
03:00 , Nicole Wootton-CaneThe government has promised to end a cliff edge in benefits faced by unpaid carers as part of a cost-of-living package.
Chancellor John Healey is expected to end the Carers’ Allowance cliff edge which has penalised unpaid carers for going over their earnings limit, even by as little as a few pence per week.
The sudden end in support for breaching the limit, widely described as a scandal by campaigners, will be replaced by a taper, so the benefit will decrease by £1 for every additional pound earned.
Ministers made the announcement as they set out a series of “everyday fixes” to help people with the cost-of-living crisis, which are expected to feature in Wednesday’s Budget.
They also plan to make a higher tax-free mileage allowance of 55p permanent, and to slash tariffs on a range of popular foods, including chocolate, beans and gherkins, to make them cheaper for shoppers.
Reform trapped in third place in polls as Burnham eyes another majority for Labour
02:00 , Nicole Wootton-CaneThe prospect of Reform UK winning a general election appears to be disappearing after a second poll in a row left them in third place behind the Labour and the Tories.
Just 24 hours after Nigel Farage and his Treasury spokesman Robert Jenrick unveiled their alternative Budget to an empty hall, a YouGov poll confirmed that Reform is trailing behind on just 20 per cent.
As Andy Burnham marks 100 days as prime minister, the poll puts Labour on 27 per cent – enough to give them a small majority of eight according to the prediction website Electoral Calculus.
You can read more below:
Reform trapped in third place in polls as Burnham eyes another majority for Labour
Analysis: John Healey’s plan for a ‘Robin Hood’ Budget may not be as risk-free as he thinks
01:00 , Nicole Wootton-CaneAs John Healey prepares to deliver a ‘steady-as-she-goes Budget’, political editor David Maddox looks at why it may not be as dull as we have been led to believe.
John Healey’s plan for a ‘Robin Hood’ Budget may not be as risk-free as he thinks
Healey ‘to announce UK minimum wage will rise by nearly 4%’ in new boost for workers
00:00 , Nicole Wootton-CaneChancellor John Healey is expected to unveil plans on Wednesday to raise the minimum wage by nearly 4 per cent, according to reports.
The UK’s National Living Wage, which applies to workers aged 21 and over, is set to rise by 3.9 per cent, moving from £12.71 to around £13.20 ($17.63) per hour, The Times reported.
Meanwhile, the National Minimum Wage for those aged 18, 19 and 20 will increase broadly in line with older workers, rising from £10.85 to approximately £11.27 an hour.
You can read more below:
UK minimum wage 'to rise by nearly four per cent' in new boost for workers
Healey vows to give Britons ‘fresh hope for future’ in first Budget
Tuesday 27 October 2026 23:50 , Nicole Wootton-CaneJohn Healey has moved to reassure voters and nervous financial markets ahead of his first Budget as chancellor with an eve-of-statement video promising “hope for the future”.
At the chancellor prepares to unveil his Budget in the Commons on Wednesday, he is hoping to continue with prime minister Andy Burnham’s feelgood approach with retail offerings on the cost of living.
But the City is already concerned about a planned raid on bank profits to help Mr Healey fill a black hole in public spending and provide much-needed financial headroom in anticipation of more financial shocks in 2027.
You can read more below:
Healey seeks to reassure nervous voters and the City ahead of his first Budget
Healey will announce Budget 'for the worker'
Tuesday 27 October 2026 23:12 , Nicole Wootton-CaneParts of John Healey’s Budget speech have been released tonight ahead of the major announcement tomorrow.
The Mirror reports Mr Healey will say his Budget is for “the worker” as he announces a raft of cost of living policies.
"This is a Budget for the worker, the sole trader, the parent at the school gate, the young person desperate to start their first job or get on to start their own business,” he will say. “A Budget that gives people breathing space now, while taking the long term action needed to get costs down for good.”
He will add: “This Budget is for the working people of Britain. It’s a Budget for business, big and small."
Cut benefits to fund defence, say majority of Britons in new poll ahead of Budget
Tuesday 27 October 2026 23:00 , Nicole Wootton-CaneThe majority of Britons back cutting welfare spending to boost defence, a new poll has found, as John Healey prepares to deliver his first Budget under Andy Burnham’s leadership.
Former defence secretary Mr Healey is under pressure to 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.
Sir Keir Starmer and Rachel Reeves faced a massive backbench rebellion when they sought to table their own welfare reforms in June 2025 and were forced to perform a U-turn.
But new polling from More in Common suggests the majority of voters believe its worth investing more in defence even if it means cutting benefits.
You can read more below:
Cut benefits to fund defence, say majority of Britons in new poll ahead of Budget
Watch: Will the Budget help bills go down?
Tuesday 27 October 2026 22:00 , Nicole Wootton-CaneChancellor 'to cut gas bills by up to £50'
Tuesday 27 October 2026 21:00 , Nicole Wootton-CaneJohn Healey is preparing to cut gas bills by up to £50 as part of a range of measures designed to help households bring down the cost of living in Wednesday’s Budget, it has been reported.
The chancellor will announce plans to end standing charges on household gas bills alongside new measures to curb the Energy Secretary’s power to impose net zero levies on household bills, reports The Telegraph.
Comment: Is Andy Burnham about to call a December election?
Tuesday 27 October 2026 20:00 , Harriette BoucherAs his party climbs in the polls, the prime minister may never have a better chance than if he goes to the country now – but there is a fundamental flaw in holding a snap election, says John Rentoul
Is Andy Burnham about to call a December election?
What can we expect in the chancellor's first budget tomorrow?
Tuesday 27 October 2026 19:30 , Harriette BoucherJohn Healey is delivering his first budget tomorrow against the backdrop of a difficult domestic economic situation, made worse by the international market turmoil caused by the Iran war.
He will have limited scope for big Budget giveaways due to the stretched public finances and significantly reduced headroom as a result of increased borrowing costs.
These are some of the announcements you can expect from the chancellor:
- Scrapping the carers’ allowance cliff edge
- Making a higher tax-free mileage allowance of 55p permanent
- Slashing tariffs on a range of popular foods including chocolate and gherkins
- Extending parental pay to more than 150,000 parents each year
- A rise in the minimum wage by nearly 4 per cent
- More than £600 million for various projects on the development and safe use of AI
- A £7 million fund for a feasibility study into a possible future bid to hold the Olympics and Paralympics in northern England
- An initial £285 million to give mayors and regional leaders in England more money and power to invest in projects in their areas
- More than £1 billion for social and affordable housing
- A further £432 million for the rough sleeping programme
HSBC quarterly profit surge sparks fresh calls for bank tax hike in Budget
Tuesday 27 October 2026 19:00 , Harriette BoucherA top HSBC executive has said the bank is not under pressure to relocate from the UK, despite a surge in its quarterly profit sparking fresh calls for the Chancellor to hike bank taxes in the Budget.
Pam Kaur, the banking group’s chief financial officer, said there was “no pressure” on the bank despite facing the prospect of higher costs.
It comes after HSBC reported a pre-tax profit of 9.6 billion US dollars (£7.2 billion) for the three months to September, which was 32% higher than the same period last year.
Read more:
HSBC quarterly profit surge sparks fresh calls for bank tax hike in Budget
NHS prescription charges to be frozen in Budget, reports suggest
Tuesday 27 October 2026 18:40 , Nicole Wootton-CaneNHS prescription charges will be frozen for another year in Wednesday’s Budget, according to reports.
The Chancellor is set to announce that the charge for a single prescription will be held at its current level of £9.90, according to The Telegraph.
If announced, the move means the cost of prescriptions will stay the same until at least April 2028.
Corbyn makes last minute budget submission as he urges Healey to 'tax the rich'
Tuesday 27 October 2026 18:30 , Harriette BoucherNumber of businesses in financial distress hits two-decade high
Tuesday 27 October 2026 18:00 , Harriette BoucherHundreds of thousands of British businesses are in “significant” distress, new research shows, as John Healey faces calls to ease cost pressures.
The latest quarterly “red flag alert” report by BTG revealed that 738,144 businesses were in financial distress in the third quarter of 2026, which is 1.6 per cent higher than the same period last year, and the highest level since the insolvency business began its research in 2004.
BTG said 22 sectors of the 20 sectors it monitored had experienced an increase in levels of significant distress.
What is the state of the UK economy heading into the Budget?
Tuesday 27 October 2026 17:30 , Harriette Boucher
What is the state of the UK economy heading into the Budget?
Healey set to give £15m to misogyny prevention fund
Tuesday 27 October 2026 16:50 , Harriette BoucherJohn Healey is set to give £15m to a new misogyny prevention fund that the government hopes will root out misogynistic attitudes.
The money is set to be invested in schemes over 3 years that could include mentoring for young people, workplace training and communications campaigns to improve outcomes and safety for women and girls across the UK.
Minister for women and equalities Bridget Phillipson said: “Day to day misogyny – from sexist slurs and harassment to workplace discrimination – quite simply has no place in modern Britain.
“The time for talk has long passed, which is why this government is putting its money where its mouth is when it comes to supporting women and girls. This funding is a critical step as we work to confine misogyny to the history books, where it belongs.
“Government is leading from the front, but we all have a role to play. Everyone – from big business to members of the public – can do their bit to stamp out misogyny and improve the lives of women and girls everywhere.”
Full Fact analysis: What is the UK’s ‘tax burden’?
Tuesday 27 October 2026 15:53 , Harriette BoucherFact checking charity Full Fact reports:
Ahead of Budget day Full Fact has seen a number of claims about the so-called “tax burden” and its impact from across the political spectrum, with business leaders also calling for the government to reduce it.
This term refers to the amount of tax revenue collected by the government each year as a percentage of GDP.
As we wrote when we looked at the figures last month, the “tax burden” is currently very high by historical standards.
The latest data from the Office for Budget Responsibility estimates that in the 2025/26 financial year tax revenues were equivalent to 36% of GDP—the fourth-highest figure since records began in 1948/49, and the highest since 1950/51.
Forecasts prior to the Budget suggest it’s set to reach record highs in the coming years.
We’ll see whether that changes after the chancellor sits back down tomorrow afternoon.
Read Full Fact’s report here.
Britain issues costliest five-year debt since 2008 on eve of Healey's budget
Tuesday 27 October 2026 15:50 , Harriette BoucherBritain has agreed to pay the highest interest rate to borrow since 2008 on the eve of John Healey’s budget.
The Debt Management Office sold £4.5 billion of 5-year debt, paying an average yield of 5.036 per cent, which is the highest interest rate in 18 years.
It said investors bid for 3.51 times the volume on offer of the 4.625 per cent March 2032 gilt which is typical of the strong demand for British government bonds this year.
It reflects the fiscal challenged facing the chancellor ahead of his first budget tomorrow.
