Chancellor Healey to unveil tax, housing and pension measures in 2026 Budget

Chancellor John Healey is set to deliver his inaugural budget, targeting several fiscal levers to ease household costs and fund public housing. He may reinstate a higher surcharge on banks, tapping profits that topped £15 billion in the first half of the year, and could raise the bank levy. A £1 billion allocation will raise total investment in the Social and Affordable Homes Programme above £40 billion, enabling up to 10,000 new council homes and offering councils cheaper borrowing rates.

The state pension is slated to increase by £489 to £13,036, pushing it above the tax-free personal allowance and shielding nearly a million retirees from income tax. Energy-bill relief could be deepened through an expanded Warm Home Discount, while fuel duty may be frozen to protect motorists. Other items under consideration include a modest mansion-tax threshold adjustment, a VAT collection requirement for foreign online sellers expected to raise £1 billion, and additional funding for rough-sleeper assistance.