Understand
Chancellor John Healey to deliver first Budget on 28 October amid high borrowing costs
Overview
Chancellor John Healey will present his first Budget on 28 October 2026, outlining tax and spending plans while facing historic government borrowing costs and tight fiscal constraints. Labour has previously pledged not to raise income tax, National Insurance, or VAT, but speculation remains regarding potential changes to Capital Gains Tax, council tax surcharges on high-value properties, fuel duty, and bank levies. The independent Office for Budget Responsibility will publish economic forecasts alongside the statement, and details of the 'Your First Home' scheme are also expected.
Key points
- Chancellor John Healey will deliver his first Budget in the House of Commons on 28 October 2026.
- Labour previously promised not to increase income tax, National Insurance, or VAT.
- The independent Office for Budget Responsibility will provide an economic assessment and future forecasts alongside the Budget.
- Details on the 'Your First Home' scheme are expected, allowing first-time buyers in England to purchase new-build properties with a 2.5% deposit and a 20% loan.
- Speculation surrounds potential adjustments to Capital Gains Tax, a possible lowering of the threshold for the Mansion Tax, and decisions regarding fuel duty and bank levies.
- UK inflation reached 3.1% in the year to August, remaining above the Bank of England's 2% target.