UK Chancellor John Healey has announced a series of budget measures covering household bills, taxes, pensions, wages and public spending. There was a LOT to go through, so we’ve summarised the main points:
⚡ Energy and household bills
- One-off £100 payment for up to 20 million households in England, with equivalent funding for Scotland, Wales and Northern Ireland.
- Gas standing charges to be removed, with costs transferred to unit prices.
- Electricity VAT reduction and fuel duty freeze extended until July.
💰 Taxes and savings
- Cash ISA allowance remains at £20,000 annually.
- Additional 2% tax on savings income and rental profits.
- Bank profit surcharge temporarily doubled from 3% to 6%.
- Tax-free business mileage allowance of 55p per mile for the first 10,000 miles made permanent.
👴 Pensions, wages and benefits
- New State Pension increases by £488 annually from April.
- Minimum wage rises by 3.9%.
- More generous earnings rules for unpaid carers.
- New tax-free allowance for lower-income pensioners.
🏠 Housing
- New support for first-time buyers in England.
- First Time Buyer ISA to replace the Lifetime ISA from 2029.
- Additional £1 billion for affordable housing in England.
- £432 million more to tackle rough sleeping.
🛡️ Defence and investment
- Extra £10 billion in support for Ukraine.
- Increased defence spending planned towards 2030.
- Over £600 million invested in artificial intelligence projects.
📊 Economy
- UK economic growth forecast at just 1.2% this year and 1% next year.
- Inflation expected to remain elevated at 3.4% in 2027.
- Government borrowing and national debt forecasts revised upwards.
🏴 What about Scotland?
Some measures, including pensions, fuel duty, ISAs and energy policies, apply across the UK. However, housing programmes and business rates changes announced for England do not automatically apply in Scotland, where devolved decisions will determine how additional funding is used.
💬 What’s your verdict on the Budget? Will these changes make a meaningful difference to your household finances?
#UKBudget #Budget2026 #Scotland #CostOfLiving #UKEconomy #Lanarkshire
