UK government announces £100 payments funded by tax rises

World Oct 28, 2026

The UK government just announced a £100 payment for about 20 million households in council tax bands A through D, hoping to ease the pressure from rising living costs.

Chancellor John Healey says this move is part of a bigger support package, funded by raising taxes on banks, landlords, and savers, with the bank levy being doubled from January 2027 for 15 months.

UK extends electricity VAT cut

The VAT cut on electricity bills will stick around until July 2027, which should help with energy costs.

Even though economic growth is expected to slow down next year (the forecast now sits at just 1%), Healey says the government's still focused on keeping spending balanced and building up financial reserves over the next few years.