UPDATED: 13:35
No U-turn on IHT
The Chancellor fails to announce any U-turn on the family farm tax in the Budget.
Changes to Inheritance Tax were first announced at the Autumn Budget in 2024 by then-Chancellor Rachel Reeves to massive protest and anger from the farming community.
A concession was later made to raise the threshold for Agricultural Property Relief and Business Property Relief.
Since April 6, 2026, Agricultural Property Relief (APR) and Business Property Relief (BPR) has been capped at £2.5 million, with 50% relief above that threshold.
UPDATED: 13:00
Budget announcements:
- Increase in the threshold for small business rate relief for retail hospitality and leisure businesses from £12,000 to £18,000 announced.
This means 70,000 businesses will be taken out of paying business rates altogether says Mr Healey.
- Chancellor says he is reducing the threshold for business asset disposal relief in capital gains tax from £1m to £500,000, which will mean 'no change for three in four claimants'.
Providing support means raising some tax says Mr Healey, and he has done so in a 'balanced way'.
- A further extension of the 5p fuel duty cut has been announced until next July.
The war in the Middle East is still driving high fuel prices which is why the government is extending tax cuts for motorists through the winter and spring.
For those who need cars for work, Healey is increasing the higher mileage rate from 25p to 35p per mile and making permanent the increase to the standard mileage rate.
- Mr Healey announces he will extend the VAT cut on electricity through the winter and spring to July, taking £50 off the annual price cap.
The government will set out 'similar reforms to follow' for electricity, he says.
- Chancellor refuses to raise tax for working people.
"My choices in this Budget, means I have kept the Labour manifesto promise not to raise tax on working people", said Mr Healey.
UPDATED:12:30
PMQs - On-farm water storage funds to open 'very shortly'
The Prime Minister has been asked to update the house on the £15 million government funds promised for on-farm water storage.
Andy Burnham has confirmed that the application system will open 'very shorty'.
UPDATED: 12:15
PMQs - UK-EU summit to back British farmers says PM
The Prime Minister has been questioned during PMQs on whether he wants a referendum on re-joining the EU.
Conservative leader Kemi Badenoch probed Andy Burnham on why he has decided to reopen a debate on freedom of movement during Budget week.
Mr Burnham responded: "Speaker, it may have escaped the Right Honourable Lady's notice that we are three weeks away from a UK-EU summit, an opportunity to improve the poor deal that they negotiated and to get a better deal in place for Britain.
"A deal that backs British farmers, British food producers, that removes red tape from our businesses, that if we get the right deal will protect our car industry and protect our steel industry and will allow better co-ordination on migration.
"The Tory party used to stand for these things.
"If they still do, will she back Britain's negotiating position as we go into that summit?"
UPDATED: 10:50
The Chancellor of the Exchequer will deliver the 2026 Budget Statement in the House of Commons today (October 28), updating Parliament and the nation on the state of the economy, public finances and progress against the Government's economic objectives.
Fertiliser tariff cut
The Government has already announced ahead of the Budget that it will be cutting fertiliser tariffs to give farming businesses ‘more room to breathe'.
Effects will take hold on November 26, 2026 and will enable importers to source fertiliser from a broad range of countries, including ones that currently face tariffs, which Defra said will improve supply and reduce import costs.
Standing charges
The Chancellor has announced that standing charges will be removed from household gas bills.
A standing charge is a fixed daily fee that gets added to your energy bill, regardless of how much gas or electricity you use.
Instead, fixed costs will be paid on the unit rate. The government estimates that 60% of households will save an average of £45 per year.
READ MORE: Chancellor to cut fertiliser tariffs to give farmers 'more room to breathe'
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