What Time Is the UK Budget 2026 Today? Start Time and Expected Tax Changes

LONDON, October 28, 2026 — Britain’s next major economic announcements are expected today as Chancellor John Healey prepares to deliver the UK Budget at 12:30 p.m. GMT (6:00 p.m. IST).

From possible bank tax increases to energy bill support and higher minimum wages, the speech could reshape household finances. Prime Minister Andy Burnham’s government faces pressure to ease living costs without significantly increasing public borrowing.

£276 Energy Bill Increase Puts Household Relief in Focus

A typical household’s annual energy bill could rise from £1,723 to approximately £1,999 in January 2027, according to forecasts cited in pre-Budget reporting.

The projected £276 increase has intensified calls for support. The Chancellor is expected to consider targeted assistance for households receiving certain benefits, although payment amounts and eligibility rules remain unclear.

Banks Could Face Higher Taxes

The government may increase taxes on major banks to help finance household assistance.

Options reportedly include reversing the bank profit surcharge reduction from 8% to 3% or raising the separate bank levy. Neither measure has been confirmed.

Minimum Wage and State Pension Changes

Workers aged 21 and over are expected to receive higher minimum pay. Employees aged 18–20 could also see increases, but smaller percentage rises than in previous years.

Meanwhile, the full new State Pension is projected to reach £13,036.40 annually from April 2027, above the existing £12,570 personal allowance.

The Chancellor is expected to explain how pensioners relying solely on State Pension income could avoid paying income tax because of the increase.

First-Time Buyers Could Purchase With 2.5% Deposit

The proposed Your First Home scheme would allow eligible first-time buyers in England to purchase newly built homes with a 2.5% deposit and a 20% equity loan.

Combined household income limits would be £110,000 outside London and £140,000 in London. A £300,000 home would require a £7,500 deposit, subject to the scheme’s final conditions.

Fuel Duty, Food Prices and Business Relief

The existing 5p-per-litre fuel duty cut is expected to remain. The government also plans tariff removals covering 100 food products, with estimated household savings of up to £21 annually when combined with earlier suspensions.

Business proposals include raising the small-business rates relief threshold from £12,000 to £18,000, changing online marketplace tax collection and supporting smaller breweries.

Ministers have also outlined plans to reduce paperwork, claiming potential business savings of £800 million.

Economic Pressure Ahead of the Chancellor’s Speech

UK inflation reached 3.1% in August, above the Bank of England’s 2% target. Rising energy costs have complicated the economic outlook, reflecting pressures also seen in Australia’s inflation and interest-rate debate.

Businesses face additional disruption risks, including severe weather affecting transport, as highlighted by recent UK airport cancellations.

Budget Speech Followed by Economic Forecasts

After Healey’s approximately hour-long statement, the Office for Budget Responsibility will publish five-year forecasts covering growth, inflation, debt and government borrowing.

Opposition leader Kemi Badenoch will respond before MPs debate the proposals. Some tax measures could take effect immediately, while others require legislation.

Readers can check the final measures through HMRC’s official Budget 2026 tax documents.

For households, the key details to watch are the confirmed wage rates, energy support eligibility, pension protections and dates when any tax changes begin.