UK Budget 2026: bank tax doubled to fund £100 energy payment

What happened. On Wednesday 28 October 2026, UK Chancellor John Healey delivered his first Budget. The government says the main idea is to give families and businesses "breathing space" from rising costs while still meeting its fiscal rules.

Who pays. The Bank Corporation Tax Surcharge rises from 3% to 6% for 15 months and ends on 31 March 2028. The government expects it to raise £1.5 billion. From April 2027, tax rates on savings and property income rise by a further 2 percentage points across all bands. The government says 84% of taxpayers will see no increase. Tax on dividends and on wages does not change.

Who gets help. In 2027 up to 20 million households in council tax bands A to D in England get a one-off £100 energy payment. The temporary VAT cut on electricity is extended to 1 July 2027, worth about £50 a year on the price cap. Gas standing charges will move into unit rates. The National Living Wage rises 3.9% to £13.21 an hour from 1 April 2027. Tariffs come off more than 100 products.

For investors and business. The cash ISA limit stays at £20,000 a year, with no cut. A new First Time Buyer ISA is coming. Founders of high-growth companies get a 10% capital gains tax rate on up to £10 million of lifetime gains. The National Wealth Fund and the British Business Bank get an extra £20.4 billion.

The forecasts. According to The Guardian and Reuters, the OBR expects growth of 1.2% this year and 1% next year. In March its 2027 forecast was 1.6%. Borrowing is set to fall from 4.2% of GDP this year to 1.8% by 2030-31. Headroom against the main fiscal rule in 2029-30 is £15 billion, £9 billion less than in March. The government blames higher debt interest costs.

Keep in mind. OBR forecasts are often revised. Many decisions, including on defence and welfare, are left to next year's spending review. This is not advice to buy or sell.

Hechos confirmados

• On 28 October 2026 Chancellor John Healey delivered his first Budget.^[1][2]
• The Bank Corporation Tax Surcharge rises from 3% to 6% for 15 months, raising £1.5 billion, and ends on 31 March 2028.^[1][2]
• In 2027 up to 20 million households in bands A to D in England get £100 for energy; The Guardian puts the cost at £2.6 billion.^[1][2]
• The temporary VAT cut on electricity is extended to 1 July 2027, worth about £50 a year on the Ofgem price cap.^[1][2]
• From April 2027 tax rates on savings and property income rise by a further 2 percentage points; 84% of taxpayers see no increase.^[1]
• The cash ISA limit stays at £20,000 a year; tax on dividends and wages does not change.^[1][2]
• The National Living Wage rises 3.9% to £13.21 an hour from 1 April 2027.^[1][2]
• A new Founders Relief gives a 10% capital gains tax rate on up to £10 million of lifetime gains.^[1][2]
• The National Wealth Fund and the British Business Bank get an extra £20.4 billion.^[1][2]
• The OBR expects GDP growth of 1.2% in 2026 and 1% in 2027; in March its 2027 forecast was 1.6%.^[2][3]
• Borrowing falls from 4.2% of GDP this year to 1.8% in 2030-31.^[2][3]
• Headroom against the fiscal rule in 2029-30 is £15 billion, £9 billion less than in March.^[1][2]

Implicaciones

• ConfirmadoUK banks pay more tax until March 2028.
• ConfirmadoSavers with large savings outside ISAs and landlords pay more from April 2027.
• Nuestra lecturaA weaker growth forecast could weigh on the pound and on UK company profits.

Todavía no se sabe

• How markets will price the Budget in the coming days: the sources we opened do not report moves in the pound or gilts.
• How the government will reach 3.5% of GDP on defence by 2035: details are promised for the spending review.
• What welfare changes follow the Milburn and Timms reviews.

A quién afecta

United Kingdom, Europe. People who live or invest in the UK, hold pounds, bank shares or gilts

Fuentes

1. HM Treasury (GOV.UK): Budget 2026: Breathing space for today, hope for the future 28 de octubre de 2026 · oficial
2. The Guardian: Budget 2026: key points at a glance 28 de octubre de 2026 · medios
3. Reuters: UK budget: Healey accepts smaller fiscal buffer after global shocks hit 28 de octubre de 2026 · medios