Government announces five Budget measures ahead of Wednesday

Summarised from 3 outlets · Updated 27 Oct, 13:58 · Archive

The Government has announced five measures to reduce everyday costs before the Budget on Wednesday.

Prime Minister Andy Burnham and Chancellor John Healey have announced five 'everyday fixes' ahead of Wednesday's Budget. The measures target everyday costs and pressures, including work-related travel, food prices, parental pay and support for unpaid carers, alongside changes to make sending and returning parcels easier.

Millions of employees and self-employed people who drive for work will benefit from changes to the tax-free mileage allowance. The Government will make the existing 55p-a-mile rate permanent for the first 10,000 business miles. For mileage above that threshold, the rate will increase from 25p to 35p per mile. The Government expects the overall package to help around three million workers.

Shoppers could save money on food bills after ministers announced plans to remove tariffs on more than 100 products. Popular items including baked beans, chocolate and gherkins are covered by the changes. The Treasury estimates the tariff cuts will save households around £21 on food shopping over the course of a year. The changes are also intended to reduce costs for farmers by cutting tariffs on fertilisers, while households that use kerosene for heating could benefit from a separate tariff reduction.

More than 150,000 parents a year are expected to benefit from an extension to parental pay. The changes will include self-employed fathers who have previously missed out on the support. The measure is intended to give more parents financial support during the early weeks of their child's life. The Government has promised to end the controversial Carers' Allowance earnings cliff edge.

Further measures aimed at supporting families and businesses are expected when the full Budget is delivered on Wednesday.

How it is being reported

• Budget 2026 - Five money changes coming before ChristmasFive Budget measures have been revealed ahead of Wednesday, including mileage allowance changes, cheaper food, parental pay and support for carers.Romsey Advertiser · 27 Oct, 13:35
• Budget 2026 - Five money changes coming before ChristmasFive Budget measures have been revealed ahead of Wednesday, including mileage allowance changes, cheaper food, parental pay and support for carers.Andover Advertiser · 27 Oct, 13:35
• Budget 2026 - Five money changes coming before ChristmasFive Budget measures have been revealed ahead of Wednesday, including mileage allowance changes, cheaper food, parental pay and support for carers.Basingstoke Gazette · 27 Oct, 13:35

In this story: Andy Burnham · John Healey · HM Treasury

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