Budget 2026 live: Healey announces £100 energy payment for millions and 3% rise in bank surcharge

In today's budget, Chancellor Healey has made several key announcements. Firstly, she has introduced a new £100 energy payment for millions of households. Additionally, he has outlined plans to provide 3% more funding for bank surcharges. He also announced new good growth funds for mayors and incubator capital for areas lacking mayors.

Furthermore, he highlighted the implementation of flexible funding to invest in local economies, which has been bolstered by an additional £1.5 billion in devolved loans for mayor authorities. These funds will support projects such as the new Black Country metro extension, led by the mayor of the West Midlands, and urban regeneration initiatives in Gateshead.

Healey emphasized that this represents unfinished business for her, as she was proud to create regional development agencies during her tenure as a Treasury minister in the previous Labour government. These agencies delivered economic growth and local regeneration prior to their disbandment by the Tory-Lib Dem coalition in 2010.

Healey's latest step involves the most radical act of devolution in a generation, namely the devolution of tax revenues. Accompanying the budget, a roadmap for fiscal devolution has been presented. For the very first time, she has committed to ensuring that 100% of business rates will be devolved.