2026: a Budget for 'working' people?

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Key points so far (live reporting):

• Growth across the country: The Budget aims to support innovation and economic growth in every postcode.

• Global pressures: The war in Ukraine is entering its fifth year, while unrest in the Middle East has pushed up oil and gas prices. Inflation has risen rather than fallen, and the OBR forecasts an additional £14 million in debt interest this year.

• Stability and cost of living: The government says it has used the fiscal headroom built up last year to help offset cost-of-living pressures linked to the Iran war.

• Tax pledge: Healey says he will not raise taxes on “working people.”

• Fiscal approach: The idea seems to be to use available headroom when pressures demand it, then rebuild it when conditions allow.

• Government's financial headroom will fall from £24bn to £15bn, according to the Office for Budget Responsibility (OBR). Financial markets reckon they can live with a smaller buffer of around that level.

• Healey says borrowing will be down to 1.8% by 2030/31. On debt as a percentage of GDP, Healey says its forecast to fall by 81.7% in 2031/32.

• Jackdaw will add estimated 2.9bn to economy and add further energy security.

• VAT cut on energy bills extended and gas standing charge removed

• Millions of households to get £100 energy payment this winter

• Fuel duty cut further extended

• Government will 'act soon' on gender pay gap and job ads

• pensioners with income up to the value of the full new state pension will not pay income tax

• increase in the threshold for small business rate relief for retail hospitality and leisure businesses from £12,000 to £18,000

• Tax free ISA allowance to remain at £20,000

• Banks to pay extra 3% on banks surcharge, starting January 2027

• Healey says he is asking more of banks to support ordinary people

• cut business rates to zero for 70,000 businesses by raising the threshold for those who have to pay it from premises with a rateable value of £12,000 to £18,000.

• Smaller rise in minimum wages for young workers confirmed

• Government must 'seize opportunities and guard against risks' of AI

• new trading allowance, raising the amount people can earn from a new venture tax-free from £1,000 to £3,000

• 100% of business rates will be retained locally by the end of the decade

• Banks shares surge following announcement: Barclays' share price is up by 2.5% while NatWest's has risen by 2.4%. Lloyds Banking Group's share price is also up 1.9%.

• review of NHS productivity amid 'digital overhaul' of government

• £10bn of support for Ukraine after call with Zelensky

Property Related:

* Basic Rate: Moving from 20% to 24% (originally planned to rise to 22%).

* Higher Rate: Moving from 40% to 44% (originally planned to rise to 42%).

Further tax increase announced for landlords

Landlords hit with another increase in tax on property income, following the rise announced in last year’s Budget. Chancellor John Healey said the rates will increase by a further two percentage points from April 2027. Tax on dividend and employment income will not change.

The Telegraph reports that the new rates could bring property income tax to 24% for basic-rate taxpayers, 44% for higher-rate taxpayers and 49% for additional-rate taxpayers. The full details have yet to be confirmed.

What it could mean for landlords

The announcement adds to the tax pressure on rental income. The effect will depend on each landlord’s circumstances and the final rules.

In his Budget speech, Healey said: “I am increasing the rates of tax on income from property and savings by a further two percentage points from April 2027. With no change to tax on income from dividends and tax on income from employment.”