UK budget: £100 for England bands A-D, electricity VAT cut
The U.K.'s new budget on Wednesday, October 28, 2026, is all about helping households and growing the economy.
There's a £100 payment for 20 million households in council tax bands A-D in England to help with energy bills, plus a cut in VAT on electricity.
Fuel duty is staying frozen until July, and import taxes on more than 100 food products, including gherkins and marmalade, as well as kerosene and fertilizers, are gone, so everyday costs might ease up a bit.
UK budget: mileage, pay and reliefs
If you travel for work, there's now a tax-free mileage rate of 55p per mile (up to 16093km).
Minimum wage is getting a 3.9% bump, and income tax relief is coming for low-income pensioners.
Parental pay will now include self-employed fathers and parents in same-sex couples.
Small shops get extra rate relief with higher thresholds, while new funding goes into social housing, AI projects, and regional development.