John Healey's first budget as Chancellor pairs energy bill cuts with a bank windfall tax

John Healey has delivered his first budget as Chancellor of the UK, with measures to cut energy bills funded by a windfall tax on banks. The budget was delivered under the leadership of Andy Burnham, and the Guardian reported the energy measures in its coverage on 29 October.

A windfall tax is a levy on profits that are considered unusually high. The government published the full Budget 2026 document on 28 October, in print, on the web and in accessible HTML versions. A collection of supporting and related papers was published the same day, along with a transcript of Healey's speech as delivered, according to HM Treasury's publications on GOV.UK.

Reuters reported that the budget will double the tax surcharge on banks' profits above a set threshold, raising it to 6% for 15 months. A surcharge is an extra tax added on top of the existing rate.

Separately, Healey announced a £100 "Household Energy Payment" that will be paid directly into people's bank accounts to help with rising energy bills, Reuters reported.

Healey described the budget as resting on fiscal discipline, meaning tight control over government spending and borrowing, as the country faces global economic storms that are pushing energy prices up.