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Autumn Budget 2026 live updates: John Healey scraps standing charges for gas bills


John Healey will scrap standing charges on gas bills for millions of Britons in the Budget this afternoon, the government has announced.

The Chancellor had promised to get ‘energy costs down for good’ and provide ‘breathing space’ for hard-pressed families.

Standing charges, which cover the cost of delivery to homes and businesses, are the feature of energy bills people complain about most, according to energy companies.

They will be scrapped from next year ‘or as soon as possible after’, the Treasury said this morning.

Instead, fixed costs will be paid on the unit rate, with the government estimating that 60 per cent of UK households will save an average of £45 per year. 

Mr Healey will deliver his Budget statement to the House of Commons at around 12.30pm, amid mounting pressure to ease the cost-of-living crisis, boost Britain’s struggling economy and plug a multibillion-pound hole in the public finances.

The Chancellor is expected to announce further measures targeting fuel duty and businesses, while speculation mounts over a potential tax raid on banks.

Follow the Daily Mail’s live coverage below.

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What can expect to hear on Defence spending?

The Royal Air Force has demonstrated its ability to rapidly project combat power at scale during Exercise RHINO TITAN, delivering a large airborne force into Germany as part of a major Joint Airborne Task Force activity. // A major wargame has seen a

Andy Burnham said on Monday that John Healey would set out a plan ​to fully fund the government’s existing defence commitments alongside a ‌pathway to hitting a 2035 NATO spending pledge.

Burnham admitted the first challenge his government had to ⁠meet was to fully fund the already announced defence investment plan.

Asked if the pathway ​set out on Wednesday would include a commitment to lift ​spending to 3 percent of GDP on defence by 2030 and 3.5 percent by 2035, he ‌said:

It ⁠is, and we will set out a plan as to how we think is the right way to do that. We will meet our NATO commitments.

Britain currently spends around 2.6 percent of its GDP on ​defence.

Healey to launch a raid on banks

Most of the revenue raised in the budget is expected to come from a raid on banks.

The Chancellor is set to increase tax on banking profits in order to fill a black hole caused by the Iran war.

Britain’s four biggest banks made a collective profit of around £15billion in the first six months of this year – prompting calls from trade unions to tax them.

One option would be to increase the surcharge banks pay on corporation tax – after it was cut by Jeremy Hunt from 8 per cent to 3 per cent.

Reversing the cut would raise around £2billion

Healey could also raise the bank levy – a small percentage charged on loans.

The expected raid comes despite Mr Healey earlier this month describing banks as ‘the crown jewels’ of the British economy.

Martin Lewis emerges from Chancellor’s residence

Consumer finance expert Martin Lewis emerged from Number 11 Downing Street early this morning.

John Healey shook his hand and waved him off.

epa13336055 Chancellor of the Exchequer John Healey (L) bids farewell to British consumer rights activist Martin Lewis (R) at his residence at 11 Downing Street in London, Britain, 28 October 2026. The Chancellor will set out the UK government's tax and spend plans to Parliament.  EPA/NEIL HALL
epa13336057 Chancellor of the Exchequer John Healey (L) bids farewell to British consumer rights activist Martin Lewis (R) at his residence at 11 Downing Street in London, Britain, 28 October 2026. The Chancellor will set out the UK government's tax and spend plans to Parliament.  EPA/NEIL HALL

What will not be in the Budget?

The Chancellor is expected to avoid increasing capital gains tax or lowering the threshold for the ‘mansion tax’, despite calls from some Labour MPs for more ‘wealth taxes’.

He is also not set to give any details of the Government’s plan to bring down Britain’s ballooning benefits bill.

Since becoming PM, Mr Burnham has insisted he will ‘bring the welfare budget down’, but ruled out ‘crude’ cuts to benefits in doing so.

He is said to have delayed a major report on youth inactivity until next month in order to prevent it overshadowing the Budget.

Breaking:Standing charges to be scrapped from household gas bills

The Chancellor will remove standing charges from household gas bills for tens of millions of people, the government has announced.

Standing charges cover the cost of delivery to homes and businesses, but will be scrapped from next year ‘or as soon as possible after’, the Treasury said.

Instead, fixed costs will be paid on the unit rate, with the government estimating that 60 per cent of households will save an average of £45 per year.

Standing charges are fixed daily fees applied separately to gas and electricity bills, which customers pay regardless of usage.

Healey quit the government over defence spending – will he now follow through?

John Healey dramatically quit as Keir Starmer’s Defence Secretary on June 11 – and the PM resigned 11 days later.

He complained that Starmer was refusing to make the necessary commitments to increases in defence spending.

Mr Healey wrote in his resignation letter: ‘As we have regularly discussed, I am certain that a headmark date for 3% of GDP on defence in 2030 is what Britain must set.’

So, now with his hands on the levers, will the Chancellor follow through on his assertion? It seems not.

Mr Healey is expected to outline modest increases to defence spending, including filling a £5billion hole in the Defence Investment Plan by cutting Net Zero and road projects.

But he is not expected to commit to raising defence spending to three per cent of GDP by 2030.

LONDON, ENGLAND - OCTOBER 26: Chancellor John Healey speaks to service users during a visit to St Martin-in-the-Fields Charity on October 26, 2026 in London, England. The visit comes ahead of the budget later this week, in which funding is set to double to support a pledge by the Prime Minister to give every rough sleeper in England a route off the streets by Christmas. Ending rough sleeping was one of Burnham's first promises when he entered Downing Street, announcing a £442m package to provide emergency accommodation and practical support. (Photo by Ian Vogler - WPA Pool/Getty Images)

Chancellor to duck much-needed welfare reforms – and increase handouts by £6m

By Jason Groves, Political Editor

The Chancellor will swerve welfare reform in today’s Budget – as he hands out billions of pounds more to benefit claimants.

John Healey will not curb runaway welfare spending despite growing pressure on the public finances.

Instead, he is expected to increase the tax burden to the highest level on record to help boost handouts.

Mr Healey has set aside £5.5billion to support a 3.5 per cent increase to benefits paid to ten million people, Labour sources told the Daily Mail.

He is also expected to earmark at least another £1billion to subsidise the fuel bills of those on benefits and low incomes this winter.

Read the rest of our Political Editor’s report ahead of the Budget:

Embeded Article Preview Image

What can we expect to hear today?

The Chancellor is said to be planning a ‘steady-as-she-goes’ Budget with some key measures to provide ‘breathing space’ to hard-pressed Brits.

These are expected to include energy bills support for poorer households, a freeze on fuel duty, action to help first-time buyers, and tax relief for smaller businesses.

Minimum wage for young people will get a rise next year – though not by as much as in recent budgets.

Mr Healey is set to bring in cash to fund these moves by launching a fresh raid on banks and a new crackdown on online retailers such as Amazon, eBay and Temu.

But – in contrast to his predecessor Rachel Reeves – he is not thought to be planning any huge tax and spend changes.

Labour promised not to raise VAT, income tax, National Insurance or corporation tax – which account for three-quarters of tax revenues.

Burning the midnight oil in Number 11

28/10/26Pictured: most lights off 11 downing street around 11.15Caption: Chancellor John Healey is delivering his first UK Budget 28/10/26 at 12:30

A single light remained on inside Number 11 Downing Street, the Chancellor’s residence, at 11:15pm last night.

What has the Chancellor said about the Budget?

27/10/2026. London, United Kingdom. Chancellor John Healey prepares for the Budget 2026, in his office in HM Treasury. Picture by Kirsty O'Connor / Treasury

The Chancellor John Healey’s headline phrase ahead of the budget has been ‘breathing space’.

This has been interpreted to mean he wants to ease the pressure felt by struggling households from soaring costs – such as energy prices.

He has also promised to make the country ‘growth Britain again’, by building confidence in British business.

Mr Healey has said: ‘This Budget is about getting Britain through this difficult moment but it’s also about putting Britain on a future path, a better future path.’

What challenges does the Chancellor face ahead of the Budget?

What time does the Budget 2026 announcement start?

Mr Healey is expected to outline the proposals at approximately 12.30pm on Wednesday in the Commons.

It should take place immediately after Andy Burnham has finished his weekly despatch box showdown with Kemi Badenoch at Prime Minister’s Questions.





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