What's been announced ahead of the Autumn Budget?
The Budget, Healey’s first as Chancellor, is scheduled for 28 October 2026. The government has framed the pre-announcements around giving families and businesses “breathing space” amid higher everyday costs linked to global events, while committing to fiscal rules, controlling borrowing, and shifting power away from Westminster.
Everyday Fixes Package
On 26 October, the Treasury announced five practical measures:
Mileage rates: The 55p-per-mile tax-free rate for the first 10,000 business miles is being made permanent. The rate above 10,000 miles rises from 25p to 35p. This supports around three million employees and self-employed people who use their own vehicles for work (including nurses, care workers, and builders). Treasury estimates show additional tax savings of about £120 a year for someone doing 6,000 business miles, or up to £300 for 15,000 miles.
Parental pay: Extended to more than 150,000 additional parents per year, including self-employed fathers and partners previously excluded. Eligible parents get two weeks of support currently worth up to £194 a week.
Carer’s Allowance: The “cliff edge” ends. Instead of losing the entire allowance for earning a penny over the Weekly Earnings Limit (equivalent to 16 hours at the National Living Wage), only £1 of support tapers away for every additional £1 earned.
Import tariffs: Removed on more than 100 products, including baked beans, chocolate, gherkins, jams, marmalades, garlic, sweets, plant-based drinks, kerosene, and fertilisers. Combined with earlier tariff suspensions, households could save up to £21 a year on food shopping; farmers and those using kerosene heating also benefit.
Post Office improvements: Hundreds more self-service parcel drop boxes (targeting 1,000 in total) and upgrades to 600 branches, making sending and returning parcels easier.
A related Warm Homes loans scheme offers low-interest or interest-free finance for solar panels, batteries, and heat pumps, potentially cutting bills substantially for participating homeowners.
Prime Minister Andy Burnham described the package as addressing everyday frustrations while promising further action in the Budget: “These changes will make life a little easier and put more money back in your pocket. And at Wednesday’s Budget, we’ll go further.”
Cost-of-Living and Business Support Already in Place or Confirmed
Broader measures already announced or underway include the temporary removal of the 5% VAT on domestic electricity bills (from 1 October 2026 for six months) and a £2 cap on single bus fares in England (from January 2027). Business rates support for pubs, social clubs, and live music venues (a further 20% cut from April 2027) and a rise in the small business rates threshold (reported plans to lift it from £12,000 to £18,000, sparing tens of thousands of smaller properties) are also in the mix, funded in part by tighter rules on online retail. Regulatory reforms aim to cut administrative burdens by 25% and save businesses nearly £800 million a year.
Capital gains tax increases have been ruled out.
Housing, Rough Sleeping, and First-Time Buyers
An extra £432 million for the rough sleeping initiative will be confirmed in the Budget, nearly doubling earlier funding and taking the total to about £874 million. This supports Burnham’s pledge to offer every rough sleeper in England a route off the streets by Christmas, with support extended through the rest of the Parliament. A Rough Sleeping Summit has already brought together businesses, charities, and local leaders.
More than £1 billion is earmarked for social and affordable housing in England, pushing the 10-year homes programme past £40 billion. Mayors and regional leaders are also set for greater powers and funding tools, including transitional seed funding and a future borrowing facility.
The “Your First Home” scheme for first-time buyers in England will be detailed further at the Budget. It allows a 2.5% deposit on new-build homes from participating developers, backed by a government equity loan of up to 20%, with an initial interest-free period, household income caps (reports indicate around £110,000 outside London and £140,000 in London), and local price caps. Developers are expected to contribute to costs. This is intended both to help buyers and stimulate housebuilding.
Investment and Growth Measures
Healey is set to announce roughly £20.4 billion in additional capital over about five years for the National Wealth Fund (£15.4 billion) and British Business Bank (£5 billion). The Treasury says this will support around 100,000 jobs by 2035 in areas including artificial intelligence, defence, and green energy, while remaining consistent with the fiscal rules (assets offset the liabilities). There is also significant AI-related funding (hundreds of millions for biosecurity, security, and cyber initiatives) and a commitment to address a reported £4.7 billion gap in the defence investment plan.
Other elements include powers for local leaders in England to introduce an Overnight Visitor Levy (a tourist tax on overnight stays) and a renewed commitment to the State Pension triple lock until 2030.
These pre-Budget announcements emphasise practical, targeted relief and investment rather than broad tax rises on working people (consistent with manifesto pledges on income tax, National Insurance, and VAT rates). Full details, Office for Budget Responsibility forecasts, and any further measures—including the expected National Living Wage rise—will come in Healey’s statement on Wednesday. Markets and analysts will be watching closely for how the package balances “breathing space,” growth, and fiscal credibility.
