UK Budget 2026: What John Healey Is Expected to Announce on Wednesday 28 October

Chancellor of the Exchequer John Healey is due to deliver his first Budget on Wednesday, 28 October 2026, in London, in the first Budget under Prime Minister Andy Burnham. The statement will set out how the Government plans to balance support for households with defence commitments and tight public finances, and it arrives as voters watch everyday prices, energy bills and borrowing costs closely.

A small set of household measures has already been confirmed by ministers ahead of the statement. Those confirmed items give households the clearest picture so far, while most tax and spending detail remains to be heard in Healey’s speech.

Everyday fixes already confirmed before the statement

Ministers have confirmed that import tariffs will be removed on more than 100 grocery items, including marmalade, gherkins, garlic, sweets, citrus jams and plant-based drinks. The Government says the tariff cuts, combined with suspensions introduced in June, could save households up to £21 a year, while Business Secretary Jonathan Reynolds put the combined annual saving at around £500 million.

Healey has also confirmed changes designed to help carers and parents. The carer’s allowance earnings limit will move to a taper rather than a cliff edge, self-employed fathers will receive two weeks of paternity pay, and higher tax-free mileage rates will become permanent.

Ministers framed the package as breathing space for families. Healey said conflict in the Middle East and Europe was hitting families at home through higher everyday costs, adding that the Government could not control global events but could act where it could make a difference.

The numbers shaping Healey’s room for manoeuvre

Reuters reporting ahead of the Budget points to a tight fiscal backdrop, with rising inflation and borrowing costs linked in part to the US-Iran war squeezing both businesses and consumers. Oxford Economics economist Alexander Harvey described the Budget as largely a stopgap that would tide the Government over before a more significant overhaul in 2027, according to Reuters.

Several large funding items have already been announced. They include £20.4 billion of additional support for a state business lender and an infrastructure bank over roughly half a decade, a £1.5 billion borrowing facility, and £600 million of funding geared towards defending against health and security threats from artificial intelligence.

The minimum wage is also in focus. The Times reported that the rate for workers aged 21 and older is expected to rise to about £13.20 an hour from £12.71, an increase of 3.9%, although that figure remains reported rather than confirmed until the statement.

What remains reported, not confirmed

A Financial Times report, carried by Reuters said Healey would use the Budget to reverse a planned cut to the cash ISA allowance from £20,000 to £12,000. Reuters noted it could not independently verify that report, so readers should treat the ISA change as reported, not confirmed, until Healey speaks. The same reporting said Healey would not lower the planned mansion tax threshold from £2 million to £1.5 million.

Other reported measures include a £1 billion tax crackdown on online marketplaces such as Amazon and Temu, reported by The Times, and possible income-tax changes on transfers of family businesses to the next generation, reported by The Telegraph. Healey has rejected calls to raise capital gains tax, according to Reuters, in an attempt to avoid a hit to business investment.

Fuel duty is another watchpoint. Fuel duty has not been increased since 2011, the BBC reported it looked set to be frozen again, and an emergency fuel duty cut introduced after Russia’s full-scale invasion of Ukraine is set to expire in January. Energy bill relief has also been reported, with The Telegraph suggesting scrapping gas standing charges could save households between £22 and £50 a year, but that too remains unconfirmed.

UK Budget 2026 — What Is Confirmed and What Is Only Reported

Why Wednesday matters for households and businesses

For households, the confirmed tariff and carer measures are modest in cash terms but direct, while the reported energy, wage and ISA items would matter far more if confirmed. For businesses, the £20.4 billion lender and infrastructure support, tariff suspensions worth almost £800 million a year in savings, and any marketplace tax crackdown will shape costs and competition.

The Budget also matters politically as Burnham’s first. Burnham said the Government was taking on big challenges without losing sight of everyday problems that cost people money or simply were not fair. The opposition Conservatives have criticised the pre-announced measures, arguing any savings had already been wiped out by broader inflation and borrowing costs.

Questions readers are asking about Budget 2026

When is the UK Budget 2026? Chancellor John Healey is due to deliver it on Wednesday, 28 October 2026.

What has already been confirmed? Tariff cuts on more than 100 grocery items, carer’s allowance reform, paternity pay for self-employed fathers, and permanent higher mileage rates.

Will the cash ISA allowance change? A Financial Times report says the planned cut to £12,000 will be reversed, but Reuters could not independently verify it, so it remains unconfirmed until the statement.

Will the minimum wage rise? The Times reported a rise to about £13.20 an hour for workers aged 21 and older, but that is also reported, not confirmed.

Will fuel duty rise? Fuel duty has not risen since 2011 and the BBC reported a freeze looked likely, but the final position will only be clear in the statement.