The Autumn Budget 2026 LEAKED
Energy Bill Measures
Central to the anticipated package is action on household energy costs. The gas standing charge—a fixed daily fee averaging around £108 a year for a typical household, paid regardless of usage—is to be scrapped from 2027 (or as soon as possible thereafter). The Treasury has said Healey will instruct Ofgem to remove it, potentially saving many households roughly £22–£50 annually (with some reports citing an average around £45 for 60% of homes). Healey has described the charges as “unfair and outdated.”
Further expected steps include scrapping green levies on energy bills “for good” (with costs potentially shifted to general taxation), extending the existing VAT cut on electricity bills (due to expire in April), and providing extra winter support for poorer households on benefits ahead of sharp January rises. Longer term, the government plans to remove the link between wholesale gas prices and electricity bills, which currently inflates costs even when gas forms a smaller share of generation
Household and Everyday Fixes
NHS prescription charges are set to remain frozen at £9.90 for another year (continuing a freeze previously announced under Rachel Reeves), holding the rate until at least April 2028. January’s planned rise in fuel duty is expected to be cancelled, maintaining the long-standing freeze (currently around 52–53p per litre, including the temporary 5p cut) for a 16th year amid high pump prices.
Other reported steps include raising the personal tax-free allowance for pensioners whose only income is the state pension (in line with the triple-lock increase, to around £13,036) so they avoid income tax, and making the “Your First Home” scheme more generous for middle-income buyers. Rail fare freezes are not expected to be extended beyond April.X
Broader “everyday fixes” already trailed include ending the carers’ allowance cliff edge (replacing it with a taper), making a higher tax-free mileage allowance of 55p permanent, extending parental pay to more self-employed parents, and a minimum wage rise of nearly 4%.
Revenue-Raising Measures and Other Policies
To help fund support, banks face higher taxes, with the surcharge on profits potentially rising from 3% to 8%—described in reports as potentially the Budget’s largest revenue raiser. Online retailers such as Amazon, eBay and Temu are expected to become responsible for collecting unpaid VAT from third-party sellers, with proceeds supporting cuts in business rates for high-street shops. HMRC is to receive powers to seize funds from the bank accounts of people who fail to pay tax.
Income tax thresholds are expected to be frozen again, potentially pulling more people into higher rates via fiscal drag. On the spending side, the Budget is anticipated to include long-term borrowing for defence industry investment (raising the share of GDP spent on defence while remaining within fiscal rules, as the investments are projected to generate returns). It is also expected to assume approval of the Rosebank oil field for significant future tax revenues. Additional elements include AI investment packages, more powers and funding for regional mayors, and tariff reductions on certain foods.
Context and Reaction
Healey has framed the approach as providing immediate relief while building longer-term resilience to global shocks and sticking to Labour’s fiscal rules. Public finances remain constrained, with debt interest costs high and headroom narrower than earlier in the year.
