UK Budget 2026: Energy payment, VAT cut, fuel duty freeze announced

Chancellor John Healey announced a £100 one-off Household Energy Payment for low-income households in council tax bands A to D, funded by a bank tax surcharge, alongside a VAT cut on electricity bills and a fuel duty freeze extended to July. The business rates threshold was raised from £12,000 to £18,000, exempting smaller shops from rates, while the legal minimum wage was set to rise by 3.9% in April and landlord taxes increased by 4%. South West businesses described the budget as having "pros and cons," noting the energy payment and tax changes helped but fell short of agricultural sector expectations on inheritance and land taxes.

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