Healey’s budget earmarks £100 for 20 million households and raises bank tax
The Autumn Budget adds a £100 energy‑bill credit, a 3% bank tax for 15 months and gambling‑tax funded relief for high‑street firms.
By Felo News Desk · Published
Chancellor John Healey told MPs the Autumn Budget aims to shield families and high‑street firms from a "global economic storm" caused by the Iran war.
What happened
Healey announced a £100 payment for roughly 20 million households in council‑tax bands A to D, costing about £2.6 billion. A new bank profit surcharge of an extra 3% will apply for 15 months from January. He also increased gambling taxes to fund business‑rates relief that will remove rates for about 70,000 shops, restaurants and gyms.
What the reports add
Standard.co.uk noted the bank surcharge increase and the gambling‑tax measure, while the Independent highlighted an extension of the VAT cut on electricity to July and a reversal of a previous cash ISA limit change. The Independent also reported a 2% rise in property‑income tax for landlords and that the Office for Budget Responsibility cut its 2027 growth forecast to 1% from 1.6% because of the Iran war’s impact on oil prices. Both outlets said defence spending was not addressed in the statements.
What was said
Healey told MPs, "Those are the storms we face. We can’t wish them away. We must choose the course we steer through them." He added that the bank tax hike would provide "breathing space" for families and businesses. The Independent quoted him saying the budget is "firmly aimed at easing the soaring cost of living".
How it came about
Healey’s approach follows earlier signals that the Labour chancellor would avoid raising capital‑gains tax, as reported in Healey rules out CGT rise on 20 October. Earlier in the month he also abandoned a mansion‑tax expansion (Mansion tax drop) and faced business push‑back over a proposed London office tax (London office tax). The bank‑profit surcharge discussion has been ongoing, with a CBI chief warning a higher levy could be an "own goal" (CBI warning) and a separate report noting Healey is weighing a restoration to 8% (Bank tax surcharge).
Key facts
- Around 20 million households will receive a £100 energy‑bill credit (standard.co.uk)
- The energy‑bill credit package costs about £2.6 billion (standard.co.uk)
- Bank profit surcharge will rise by 3% for 15 months from January (standard.co.uk)
- Gambling‑tax increase will fund business‑rates relief for roughly 70,000 high‑street firms (standard.co.uk)
- OBR cut its 2027 UK growth forecast to 1% due to the Iran war (independent.co.uk)
Timeline
- 2026-10-11 — Healey abandons plan to widen mansion tax
- 2026-10-15 — Healey faces pushback over proposed £1bn London office tax
- 2026-10-20 — Healey rules out capital gains tax rise ahead of budget
- 2026-10-20 — CBI chief warns raising bank tax could be an "own goal"
- 2026-10-28 — Healey delivers Autumn Budget with household credit and bank tax hike
Sources
- [1] standard.co.uk
- [2] independent.co.uk
