Banking levy adjustment
Chancellor John Healey confirmed an increase in the tax rate applied to big bank profits, moving it from 3% to 6%. The levy will run from January until April 2028. The revenue will help fund a one-off £100 energy payment for households living in council tax bands A to D in England, alongside business rate reliefs for high street shops.
Wider fiscal measures
The Office for Budget Responsibility reported that the UK will spend £14bn more on debt interest payments this year. Basic rate taxpayers will see tax on savings and property rental income rise to 24% from April 2027, while a previously proposed reduction to the cash ISA allowance has been scrapped.