Key budget policies to be unveiled by chancellor John Healey on October 28

John Healey will deliver his first Budget as chancellor on Wednesday as Andy Burnham seeks to set out his government’s fiscal priorities, reports BritPanorama.

Former defence secretary Mr Healey is under pressure to find billions of savings to help ramp up Britain’s military spending, while also ensuring that the series of pledges made by the prime minister during his initial weeks in office receive adequate funding.

As with any Budget, speculation surrounds potential inclusions in the statement, although fewer leaks have surfaced compared to last year.

All eyes will be on the chancellor to see if he outlines plans on key issues such as welfare reform and defence, as well as any significant tax policies.

Here is a roundup of what could emerge from the Budget on 28 October:

One major aspect of the Budget is expected to focus on additional support for UK households struggling with soaring energy costs.

Mr Burnham has already cut VAT on electricity bills but acknowledges that the government must do more, especially with the impending increase of the energy price cap in January.

Mr Healey hinted at further assistance for energy bills on Thursday, stating, “Energy costs are punishing at the moment.”

“We will do what we can in the Budget, both for business and for households, to give people a bit of breathing space.”

It has also been reported that he is looking to allocate over £1bn to implement greater discounts for households that are struggling with rising costs.

This will likely take the form of an expansion of the existing Warm Home Discount, which currently offers a £150 rebate on energy bills for households receiving qualifying means-tested benefits. There are indications that this could be increased by another £100, according to reports.

Ministers are reportedly preparing to unveil a tax crackdown on online retailers as part of the chancellor’s aim to deliver a budget catering to the “white van man” and the “high street beautician.”

Mr Healey is looking to ensure that major online marketplaces such as Amazon, eBay, and Temu will bear the responsibility for collecting taxes owed by retailers utilizing their platforms.

The policy, reported by The Times, will primarily target foreign sellers who exploit loopholes to avoid paying VAT. It is expected to generate as much as £1bn, funds which would then be used to reduce business rates for high street shops.

Mr Burnham announced last month that first-time buyers struggling to enter the property market will benefit from a new help-to-buy scheme.

Further details regarding the scheme and its financial implications are likely to be unveiled in Mr Healey’s statement.

The new ‘Your First Home’ scheme will allow savers to secure a mortgage with merely a 2.5 per cent deposit. A loan covering 20 per cent of the property’s value will also be available to assist in the purchasing process as part of the scheme.

According to The Times, the scheme was originally set to apply to those with an earning limit of £90,000 for homes outside of London and £110,000 within. However, ministers are reportedly considering a revised higher limit of up to £110,000 outside the capital and £140,000 within.

Speculation around changes to Capital Gains Tax (CGT) emerged when Mr Burnham first became prime minister over the summer.

Prior to her appointment, Louise Haigh advocated for an increase in CGT, suggesting that the tax rate should be brought closer to income tax levels.

The proposal would see the levy, currently applicable to profit made from the sale of an asset that has appreciated in value, taxed at a rate of 45 per cent rather than the current range of 18 to 24 per cent.

Nevertheless, experts have warned against such a hike, asserting that any attempt to increase the tax could lead to business owners delaying the sale of their companies or relocating their capital abroad to avert the burden.

Last year, former chancellor Rachel Reeves announced that a “mansion tax” would introduce a high-value council tax surcharge, imposing fees on properties valued over £2m starting in April 2028.

However, speculation has surfaced that the prime minister may be contemplating an expansion of these plans by lowering the threshold to include properties worth at least £1.5m.

Tax analysts suggest this change could potentially double annual receipts from the levy to £800m and significantly increase the number of affected properties from 123,000 to around 245,000.

When Mr Burnham took office, speculation intensified regarding potential reforms to stamp duty, a cost often cited by economists as a barrier to homebuyers.

Rumours have circulated that it might be replaced by an alternative annual property tax or, as Mr Burnham has previously mentioned, a Land Value Tax (LVT)—an annual payment determined by the value of the land.

Mr Burnham has portrayed LVT as a “very productive form of taxation” as it encourages efficient land usage, penalising those who hoard land and redistributing the resultant funds.

Fuel duty was initially frozen under the Conservative Party in 2022 and remained unchanged under Sir Keir Starmer’s administration.

It is now slated to rise on January 1, from nearly 53p per litre to about 56p, increasing costs for motorists.

However, Mr Burnham has signalled openness to halting the planned rise, stating last month that “every possible measure” is being considered to alleviate transportation costs.

When asked whether he would suspend the increase, the prime minister remarked: “I’m considering everything that might help people in very difficult times and I will be honest and say every possible measure is being looked at.”

Mr Healey is facing pressure from opposition parties to cut spending on benefits.

In his first Labour conference speech as chancellor, he conveyed that allowing a growing benefits bill is not progressive.

Sir Keir and Ms Reeves encountered a significant backbench rebellion when they attempted to introduce their own welfare reforms in June 2025, which led them to retract their proposals.

However, Treasury sources indicated that Mr Healey’s speech was an effort to create a moral case for welfare reform, aiming to unite the party.

During his speech at the recent Labour Party conference, Mr Burnham also mentioned that the government could reduce the welfare bill by incentivising more people to enter the workforce.

Nonetheless, he has ruled out “crude cuts” to benefits, emphasising that this should “never be the Labour way.”

One of Mr Healey’s major challenges will be outlining how the government plans to finance £5bn of defence spending announced in May’s Defence Investment Plan (Dip) without detailing funding sources.

He will likely face demands to increase that funding, having resigned from his position as defence secretary prior to the Dip’s publication, arguing it lacked adequate allocations for the armed forces.

The chancellor has announced reductions in the costs of essential supermarket items, including baked beans, gherkins, and chocolate ahead of his Budget announcement this week.

John Healey confirmed the elimination of import tariffs on over 100 products.

Expected items to benefit from these cuts include jams, marmalades, garlic, and toffees, in addition to kerosene and fertilisers.

In a pre-Budget announcement, the chancellor confirmed that the current tax-free mileage rate will become permanent.

The rate of 55p per mile for the first 10,000 business miles will be maintained, while the rate will rise from 25