Chancellor John Healey says 20 million households in council tax bands A-D in England will receive a £100 "household energy payment" in his first Budget
Funding will be allocated to devolved governments in Scotland, Wales and Northern Ireland to do the same
Closer look: Recap of the key measures, and how the changes might affect you
Banks will pay an extra 3% surcharge on profits, which will be "time-limited" - a smaller tax rise than expected
Healey says there will be "fiscal devolution", with business rates retained locally by the end of the decade and mayors getting a share of income tax from 2028
Meanwhile, there are tax rises on some savings and rental profits
Tory leader Kemi Badenoch says the Budget is "not good enough, not strong enough, not bold enough", while the Lib Dems urge the government to "fix our trading relationship with Europe"
Dharshini David
Deputy economics editor
There is also disappointing news for another key part of Labour's growth strategy - housebuilding.
Even though first-time buyers are set to get more help, their first home may be more elusive.
Between regulation and higher costs, in part related to the Iran war, the OBR estimates that 190,000 fewer homes will be built by 2032 compared to what it thought in March.
It is a significant setback.
By Lewis McBlane
The government has said up to 20 million households in England will receive a £100 one-off payment towards their energy bills in January.
About five million households will not receive this help, data from the government shows, as their home falls outside the lower council tax valuation bands A to D.
The proportion of households who will receive the £100 also varies significantly across England.
In some areas of London and the South East, fewer than half of households will be eligible. In Kensington and Chelsea just 32% of households are in bands A to D, with 41% in Elmbridge in Surrey and 49% in St Albans.
But in other areas, almost all households could receive it, for example 96% of households in Liverpool are eligible, 97% of Sandwell in the West Midlands and 99% of Hull.
Governments in Scotland, Wales and Northern Ireland will receive additional funding based on the cost of the scheme, but can decide how to spend the money themselves.
John Campbell
BBC News NI economics and business editor
The £100 cost-of-living grant will not be paid in Northern Ireland unless the Stormont government agrees its own budget, the Secretary of State Chris Bryant has warned.
Stormont is in the highly unusual position of being seven months into the financial year without a formal budget in place.
Local ministers say the UK’s devolution funding formula no longer delivers enough for them to produce a balanced budget. They want Westminster to provide a big financial top up.
Meanwhile public services have been operating under emergency procedures which keeps money flowing to frontline services.
But Bryant says those procedures will not permit the spending of the additional money which the chancellor has provided today.
Ultimately he could impose a budget on Stormont by legislating at Westminster. That would be unprecedented.
Finance Secretary Jenny Gilruth says the Scottish government will "seek to replicate" the £100 energy payment announced in the UK Budget. As we just reported, the Welsh government said it would match the payment.
Chancellor John Healey said the cash would be received by households in England which are in council tax bands A to D, and money will be given to the devolved governments, with Healey urging them to use it to do the same.
Gilruth says she'll consider how best to deliver an equivalent scheme in Scotland.
She adds any measures to bring down costs were welcome, but that the chancellor’s plans "fall far short" of the action needed.
Gilruth also said the Budget would mean a £650m real terms cut in Scotland’s budget next year.
"Cutting Scotland’s budget shows that, yet again, we are being treated as an afterthought," she says.
David Deans
BBC Wales political reporter
The Welsh government has confirmed that it will also make a £100 payment to households in A-D council tax bands for energy bills.
Chancellor John Healey had urged devolved nations to match the plans he announced for England, with the share of funding they will receive as a result of the scheme.
Wales' Finance Minister Elin Jones says the UK government had "responded positively to the Welsh government’s calls to provide funding to make this possible".
"We know that cost-of-living pressures are causing anxiety for far too many people," she says.
"I am pleased to confirm that we will be making a £100 cost-of-living payment to all households in council tax bands A to D."
Erica Witherington
Disability affairs reporter
Image source, Emma MartinMum Emma says the announced change to the Carer's Allowance is a "positive start"
For nearly 30 years, Emma Martin has juggled caring for her disabled daughter, Mia, with work - while carefully watching her wages so she didn’t fall foul of "punishing" Carer’s Allowance rules.
To be eligible for the benefit, claimants must be caring for someone at least 35 hours per week, and earning no more than £204 a week, after tax.
When Emma unknowingly earned 50p over that limit for three months, a letter arrived demanding £1,500 back. “I was just speechless," she says.
"The DWP were absolutely not interested in explanations. They literally just wanted that £1,500 back."
Emma says getting the bill left her feeling "anxious, sick" and worried about how she would pay it.
Now the chancellor has announced the end of that "cliff edge" rule, saying the benefit will instead reduce gradually as earnings rise.
But that’s not expected to come in until around 2030. Emma says "it’s a positive start” but "it needs to happen sooner."
Hugh Pym
Health editor
As one commentator put it, this was the least health-focused Budget for many a year.
Even the £190 million awarded to the NHS in England to help cope with winter pressures did not get a mention in the speech.
Coming this late in the year it may be hard for benefits to be achieved over the winter period.
There will be a review of NHS productivity and the opportunities presented by AI.
There is to be a new category of ring-fenced spending across government departments for prevention initiatives which help reduce longer term problems though there is little detail.
There was a sense that for the chancellor, knowing the challenges across the health system, the NHS was a subject he did not want to dwell on.
Image source, EPA/ShutterstockWith John Healey delivering his first Budget, correspondents across the BBC have offered their insight on what the chancellor's pledges mean for the country's finances:
By Nicholas Barrett
The chancellor has announced the National Minimum Wage for 18-to-20 year-olds will rise from £10.85 an hour to £11.27 next April.
This 3.9% lift is lower than the 8.5% rise set out last year.
Today’s Budget also raised the minimum wage for older workers by 3.9%, taking their hourly rate from £12.71 to £13.21.
The consistent rise between both groups is significant because addressing the wage gap between younger and older workers was a pledge in Labour’s 2024 election manifesto, which said the party would: "Remove the discriminatory age bands, so all adults are entitled to the same minimum wage, delivering a pay rise to hundreds of thousands of workers across the UK."
But the manifesto did not specify when this would happen and Business Secretary Jonathan Reynolds told the BBC before the Budget that the “manifesto pledge on equalisation still applies, but we were always clear it could happen over time".
Andrew Rogers and Lizzy Bella
BBC Newsbeat
As well as being a seaside town, Bournemouth is a university town, and we’re hearing from students today on their reaction to the Budget.
For 18-year-old business student Ollie Parram, he says young people seem to have been a bit forgotten by Chancellor John Healey.
"In terms of young people, that wasn’t a massive focus of the Budget," he says. "But I’m hoping it’s future proofing."
A decision to raise the National Minimum Wage, which is paid to workers aged 18-20, at the same rate as the National Living Wage, paid to over-21s, will affect lots of the students we’re talking to today.
It means under-21s will continue to be paid less, despite a Labour manifesto pledge to close that gap.
"It seems as if they’ve kicked that down the road which is a shame to be honest," says Ollie.
"I don’t think there’s many costs that a 21-year-old has that an 18-year-old wouldn’t have."
All age groups who are paid the minimum wage will receive a 3.9% rise next April, the chancellor announced today.
Here's what that looks like:
For 18 to 20-year-olds, their hourly rate will rise from £10.85 to £11.27.
This remains below workers over 21, who get paid the national living wage - they will get £13.21 an hour, up from £12.71 at the moment.
And those under 18-years-old or on an apprenticeship will see their wages increase from £8 to £8.31.
Justin Rowlatt
Climate editor
The Office for Budget Responsibility (OBR), the government’s independent official forecaster, has included tax revenue from Rosebank in its Budget forecast, even though the North Sea oil field hasn’t been approved.
That’s sensitive for the government.
The decision is quasi-judicial, meaning it rests with the energy secretary alone and must be made on the evidence, free from political pressure. Miatta Fahnbulleh is reported to be leaning towards refusal, while Healey backs approval.
The government is balancing arguments from the sector that the field will generate jobs and revenue, against those from environmental groups that say this goes against the country's commitments to tackle climate change and move away from fossil fuels.
But the OBR’s assumption may be routine. Its forecast uses North Sea Transition Authority production figures, which include fields not yet consented.
The OBR says UK North Sea production would fall by around 14% a year to 2031 with no new fields, compared with around 10% a year if Rosebank and other unconsented fields go ahead.
By Mark Poynting
Chancellor John Healey announced some short-term measures to ease energy bills, including a one-off £100 payment to about 20 million households.
But those measures are unlikely to offset the rise in the price cap expected in January.
Forecasts by the Cornwall Insight consultancy suggest the price cap could increase by around £276 a year, mainly due to gas price rises linked to the Iran war.
And more recent forecasts by EDF suggest the increase could be steeper still.
Healey also announced that the government would scrap the standing charge on gas bills, which is the fixed daily fee that helps to cover costs such as maintaining the gas grid.
The government says those costs will instead be funded by the unit rate - the price paid per unit of gas used - and adds that most households will save money.
But those using lots of gas could pay more, and the government has only committed to making the change “by the end of next year”.
Alex Partridge
BBC Westminster
Image source, POOLThe prime minister has rejected criticism that the Budget wasn't "bold" telling broadcasters he thought it was "pretty bold" to help 20 million households with their energy costs.
"It's bold to lift 70,000 businesses out of business rates all together," he says.
"We're doing what we can to support people in difficult times", he said and there are "strong signs that the economy will improve," the PM adds.
Asked if people would be poorer next year, Burnham said the UK is not "immune to the pressures on finances coming from the situation in the Middle East and the impact that's having on the cost of fuel, on the cost of energy, we can't insulate people completely".
However, he says the government is doing "meaningful things" to provide "breathing space" for people, citing the £100 energy rebate, VAT off electricity bills and removing the standing charge from gas bills.
"If you add that up that is a significant amount of help that is coming people's way in 2027."
Helen Miller, director of the Institute for Fiscal Studies says the budget included “a raft of fiddly measures but very little that will move the dial on growth".
She continues: “There was a relatively small ‘breathing space’ package, relying on the outdated council tax system to provide one-off payment of £100 to around 80% of households in England, rather than just those on low incomes.
"Decisions to delay the rise in fuel duty and extend the ‘temporary’ cut to VAT on electricity until next July are unsurprising and there is a clear risk they won’t actually be temporary."
She welcomes Chancellor John Healey's “commitment to fiscal consolidation” but warns the plan “has an Achilles’ heel in the form of very tight plans for public service spending”.
Miller says the government's spending review next year "will be a crunch point" and looks "very tough for many departments", whose budgets will be squeezed by higher inflation forecasts.
“The plans for overall spending set out in the Budget mean that spending choices at next year’s spending review will be much harder than those made so far this Parliament," she adds.
Justin Rowlatt
Climate editor
Healey told the Commons that the government’s focus is now "cheaper energy". He said clean power was key to this and insisted Labour stays "unshakeably committed to net zero by 2050."
But the wars in Iran and Ukraine are the main driver of rising prices, so the chancellor’s focus was more about who pays what.
He’s scrapping green levies on energy bills, saying policy costs had been "simply loaded onto household bills".
"Today I am putting an end to that," he announced.
He’s also scrapping gas standing charges, extended the VAT cut on electricity, and is giving households in England in council tax bands A to D £100 for energy bills.
The costs haven’t gone away but now more of them are being picked up by all taxpayers irrespective of your energy use.
And there’s a catch. Economic theory suggests lower prices tend to encourage people to use more, which could make the net zero challenge even bigger.
Colletta Smith
Your Voice correspondent
It’s been a busy half term day at Bluebells Dairy farm in Derby.
As the chancellor delivered his Budget speech, mums Lauren and Nathalia were making magic potions with their kids for a day of Halloween activities.
Lauren, who is a teacher, welcomed the energy help offered to families by the chancellor.
"The price of everything has gone up but our wages are not going up," she says.
"We've been doing all sorts to save energy costs like turning off lights and keeping doors closed. Any money off bills is a good thing."
Nathalia, who has three children, agrees. She says families do need the help the government is offering to make even a little bit of a difference as wages just get eaten up so quickly.
"It’s just a really challenging time, especially if you are a bigger family. We have three kids so everything costs a lot."
Gareth Lewis
BBC Wales political editor
As part of the Budget, the government has announced that people living in a home in England in council tax bands A to D will receive a one-off £100 "Household Energy Payment" from January, funded by extra tax on banks.
If you live in a home in Wales and are in Council Tax bands A-D it is not yet clear how the £100 energy payment will operate.
Council tax and local government are devolved, so controlled by ministers in Cardiff Bay not Westminster.
The chancellor urged the Welsh government to follow his lead and make the payment - and although Welsh ministers will get so-called consequential funding it will be up to them how to spend it.
It is also not clear whether the Welsh government has the mechanisms in place to pay straight into people’s bank accounts, as is the plan in England.
The Welsh government has been asked to respond.
Glenn Campbell
BBC Scotland Political Editor
There was a direct challenge to the Scottish and other devolved governments in this budget. It was related to the £100 energy payments promised this winter to households in England in council tax bands A-D.
This spending will generate additional cash for ministers in Edinburgh, Cardiff and Belfast to spend as they choose but the Chancellor has urged them to use it in a similar way.
Given that the Scottish government called for extra help with the cost of living in advance of the UK budget, my guess is that they would want to allocate it to easing those pressures - whether or not they do exactly the same as John Healey.
Officially, they are waiting to crunch all the numbers before making any decisions.
The Scottish government is due to announce its own draft budget for the year ahead on 3 December.
Image source, Getty ImagesGreen Party leader Zack Polanski says the Budget "all felt very familiar" after writing on social media: "Was that it?"
"A Labour Government totally unwilling to take on power and wealth and give our country the investment we so desperately need," Polanski writes on X, adding a link to join the Green Party.
