Budget on 28 October: rising living costs and the Burnham government's measures

The Chancellor will set out plans for taxation and public spending on Wednesday 28 October 2026. The government is then expected to introduce a Finance Bill in Parliament to implement the tax changes announced in the Budget.

Voices from the prime minister's constituency

BBC News looks at how the Budget may be received in the constituency of Prime Minister Andy Burnham. According to the description of the piece, residents say rising costs are squeezing household finances. We could not retrieve the full BBC text, so we rely only on that description.

What the government has already announced

The House of Commons Library has summarised the measures the government announced in Prime Minister Burnham's first week in office:

• Removal of the 5% VAT rate on domestic electricity bills in Great Britain from 1 October 2026. The government says the average annual bill will fall by around £45. The measure is due to apply until the end of the 2026/27 financial year, that is March 2027.
• A cap of £2 on single bus fares in England outside London from 1 January 2027 to the end of 2027. The existing £3 cap stays in place until the end of 2026.
• Continuation of the scheme announced in May providing free bus travel for children aged 15 and under.

The House of Commons Library notes that any changes after March 2027 are likely to be announced at the autumn Budget.

What this means for you

The announced relief applies to households across Great Britain, including Polish families: lower VAT on electricity and cheaper bus fares in England outside London. Tax details and any new decisions will only be known after the Chancellor speaks on 28 October 2026.