Autumn Budget 2026 live updates: Chancellor John Healey ditches Isa raid and announces £100 energy payment as council tax checker crashes

Kemi Badenoch has launched a blistering assault on John Healey’s first Funds, accusing Labour of leaving Britain drowning in debt, taxes and welfare spending.

The Conservative chief claimed the Authorities was spending extra on debt curiosity than on the Military and faculties mixed, whereas warning that the tax burden was heading in direction of a file excessive.

She instructed MPs:

Ms Badenoch additionally mocked the Authorities’s lately printed resilience plan, declaring:

John Healey has introduced a wave of funding in cities and cities throughout the nation, together with £20million to revive Liverpool’s historic Littlewoods Constructing.

The Chancellor pledged £15million to improve Leeds Faculty of Constructing, alongside £10million every for Stafford’s new market corridor, Bury’s indoor market and Bristol’s Temple Quarter.

An extra £3million will assist younger folks in Plymouth safe jobs within the defence trade, whereas one other £3million will fund a know-how enterprise incubator within the Don Valley.

Mr Healey additionally confirmed new entry to authorities borrowing for the Cambridge Improvement Company.

And he introduced that Gateshead will host the following Worldwide Funding Summit within the spring, because the Authorities seeks to draw extra funding into Britain.

John Healey has unveiled a package deal of measures aimed toward boosting housebuilding, together with scrapping VAT on land bought to social housing suppliers.

The Chancellor additionally pledged cheaper borrowing for councils and confirmed that constructing laws would stay unchanged for the remainder of this Parliament.

Builders constructing on beforehand developed brownfield websites may even be exempt from biodiversity necessities beneath the plans.

Mr Healey introduced an additional £1.5billion for the Authorities’s 10-year reasonably priced and social housing programme, taking complete funding to greater than £40billion.

John Healey has pledged to convey down Britain’s welfare invoice as he introduced plans to overtake the Motability scheme and tighten guidelines for pensioners dwelling abroad.

The Chancellor accused the Conservatives of forsaking a ‘damaged’ welfare system and insisted Labour would take motion to scale back spending.

He stated the Authorities would ‘clamp down’ on ‘these dwelling overseas from accessing a UK state pension on a budget’.

Mr Healey declared:

Nonetheless, additional particulars of the reforms wouldn’t be introduced till later this 12 months.

John Healey has pledged to fill a £4.7billion funding hole in Britain’s Defence Funding Plan by diverting cash from different authorities departments.

The Chancellor confirmed the shortfall can be coated ‘together with by means of capital reprioritisation throughout Whitehall’.

The transfer means spending beforehand earmarked for tasks elsewhere in authorities might be redirected in direction of defence.

John Healey has introduced an additional £430million to sort out tough sleeping because the Authorities pushes forward with its pledge to finish homelessness on Britain’s streets.

The funding comes on high of £442million promised in August, taking the whole dedication to £874million by the top of this Parliament.

Prime Minister Andy Burnham has vowed to finish tough sleeping and guarantee each homeless individual is obtainable a mattress by Christmas.

John Healey has introduced plans to exchange the Lifetime Isa with a brand new financial savings account for first-time patrons.

The Chancellor additionally unveiled a £4.7billion government-backed fairness mortgage scheme, known as ‘Your First Residence’, to assist patrons with out monetary help from their mother and father get on to the property ladder from subsequent spring.

He confirmed the controversial Lifetime ISA withdrawal penalty can be reformed instantly, which means savers buying a property above the prevailing value cap would get again a minimum of the cash they paid in.

Mr Healey instructed MPs:

Entrepreneurs can pay simply 10 per cent capital beneficial properties tax on as much as £10million of lifetime beneficial properties beneath a brand new reduction.

The Chancellor unveiled the measure, dubbed ‘founder’s reduction’, in his first Funds in a bid to encourage profitable enterprise founders to stay in Britain and reinvest their wealth.

He instructed MPs:

Mr Healey additionally tripled the buying and selling allowance from £1,000 to £3,000, permitting folks beginning new ventures to earn extra earlier than paying tax.

Regional mayors will probably be given a share of revenue tax revenues and new powers to impose vacationer taxes beneath plans unveiled by John Healey.

The Chancellor introduced a significant shake-up of native authorities funding, pledging that councils will retain 100 per cent of enterprise charges by the top of the last decade.

From subsequent 12 months, mayors will obtain 20 per cent of enterprise charges income, adopted by a share of revenue tax receipts from 2028.

Mayors and different strategic authorities may even be allowed to introduce an in a single day customer levy from 2028.

Mr Healey stated:

He stated the reforms would assist fund main infrastructure tasks, together with London’s Bakerloo Line extension.

Chancellor John Healey stated he’s ‘getting work beneath means’ to succeed in spending of three per cent of GDP on defence by 2030 and can set out how he’ll hit that focus on at subsequent 12 months’s spending assessment.