No rise in income tax, National Insurance or VAT rates, a £100 energy payment for many households, cheaper electricity and fuel duty frozen. Here is what today’s Budget means for you in Kent.
Chancellor John Healey delivered his first Budget on Wednesday, setting out a package designed to ease pressure on household bills. There are no rises in income tax, National Insurance or VAT rates. The biggest immediate changes are a direct cash payment to help with energy costs, cheaper electricity and a continued freeze on fuel duty.
The government says it is trying to give families and businesses breathing space, particularly on energy. The measures below are what the Budget means for people in Kent.
Your energy bills
The reduced VAT rate on electricity is extended to July 2027. The Budget says this is expected to take around £50 off the annual Ofgem price cap in April 2027.
A £100 cash payment will go directly to households in council tax bands A to D in England. It will be paid through the council tax system from January 2027. Up to 20 million households across England are eligible.
Gas standing charges, which add a fixed daily cost to bills regardless of how much you use, will also be abolished. Ofgem is aiming to deliver this by the end of 2027.
Driving and getting about
Fuel duty stays frozen at 52.95p a litre. The existing 5p cut is kept until 1 July 2027. Bus fares remain capped at £2, as previously announced.
Your pay, savings and pension
The National Living Wage rises to £13.21 an hour from 1 April 2027. The Budget says that is worth £910 a year for a full-time worker.
If you earn income from savings or renting out property, tax on that income rises by 2 percentage points from April 2027. The Budget says most income tax payers will not be affected by this change.
The cash ISA allowance stays at £20,000. A planned cut to that limit has been reversed.
The State Pension triple lock will be adjusted from the next Parliament. The government links this to a plan for free personal care in England, with a commission reporting in 2027. Pensioners with incomes at or below the full new State Pension will not be brought into paying income tax because of State Pension rises in this Parliament.
Buying your first home
A new scheme called Your First Home offers equity loans covering 20% of a property’s value. You need a deposit of at least 2.5% and the loan is interest-free for five years. Outside London, the household income cap is £110,000. Price caps are set by local authority median prices; the specific caps for Kent areas were not published in the Budget document. The average first-time buyer in Kent paid £283,559 in August 2026.
Shops, pubs and small firms
More small businesses on high streets will pay no business rates from April 2027. The threshold for full relief rises, meaning around 70,000 more businesses across England will be exempt. Pubs, social clubs and most live music venues get an extra rates discount on top of that. Other retail, hospitality and leisure properties have their rates frozen for two years.
What it means for Kent
The Budget names a new Strategic Authority for Kent and Medway, a body that can take on powers and money from central government. Whether it has a mayor depends on the outcome of local government reorganisation in Kent, which is currently paused. District elections are due on 6 May 2027 on existing boundaries.
Kent County Council was already forecasting a £21.4 million overspend this year before the Budget. Council funding for next year is normally confirmed in December.
Can the government afford it?
Higher borrowing costs, linked to the conflict in the Middle East, have added significantly to the government’s interest bill. The cushion on the government’s main spending rule fell from £24 billion to £15 billion as a result. The government chose to absorb those extra costs rather than raise broad-based taxes.
Budget 2026: a £100 energy payment, cheaper electricity and fuel duty frozen. What it means for you in Kent Quiz
5 questions
Sources
- HM Treasury — Budget 2026 (HTML), 28 October 2026
- Office for Budget Responsibility — Economic and fiscal outlook, October 2026
- HM Treasury — Fiscal Devolution Roadmap
- GOV.UK — Budget 2026 in full
- ONS claimant count via Nomis — Kent and Medway, September 2026
- HM Land Registry — UK House Price Index, Kent, August 2026
- Kent County Council — Scrutiny Committee papers, 21 October 2026