The Labour Government’s 2026 autumn Budget, the first under Prime Minister Andy Burnham, sets out a clear plan to support families with the cost of living, back British businesses and invest in the long-term future of our economy. At a time when conflict in the Middle East and Europe continues to push up prices and create uncertainty, it is important that we maintain economic stability while giving people some much-needed breathing space.
This Budget also keeps Labour’s manifesto promise not to increase the headline rates of Income Tax, National Insurance or VAT. There are no increases in these taxes on working people, and we are taking responsible decisions to protect household finances while investing in the country’s future.
One of the most important measures to help with the cost of living is additional support with household energy costs. From January, households in council tax bands A-D will receive a £100 Household Energy Payment, alongside the extension of the temporary zero rate of VAT on electricity, providing £150 of support for millions of households. Across the North West, more than 3 million properties, representing 89% of homes in the region, will benefit from the £100 payment. The Government is also taking steps to abolish gas standing charges, maintain the freeze on fuel duty and increase the National Living Wage by 3.9%. These are practical measures which will make a difference to household budgets in Liverpool Garston.
Local businesses and high streets will also benefit. The Budget increases the threshold for Small Business Rate Relief for retail, hospitality and leisure businesses from £12,000 to £18,000, taking an additional 70,000 businesses out of paying business rates altogether. This will provide welcome support for independent shops, cafés, pubs and other businesses locally. The Government is also backing entrepreneurs by increasing the tax-free trading allowance from £1,000 to £3,000 and providing additional investment through the British Business Bank to help growing businesses create jobs and opportunities.
The Budget also takes important steps to tackle the housing crisis. An additional £1.5 billion will support the delivery of 10,000 more social and affordable homes, while new measures will make it easier for councils to borrow to build. For first-time buyers, the Government is introducing a new First Time Buyer ISA with a 25% bonus and a new equity loan scheme to help around 70,000 households in England onto the housing ladder. Alongside this, further investment to tackle rough sleeping will help ensure that vulnerable people are offered a route off the streets and into more secure accommodation.
I welcome the announcement of £20 million towards the regeneration of Liverpool’s historic Littlewoods building, subject to the approval of the business case. This will support a £127 million project to create a major new centre for film, television and digital production. The development is expected to support 3,200 full-time jobs, provide opportunities for more than 800 students each year and contribute an estimated £170 million annually to the local economy.
There is further good news for Liverpool City Region through the Government’s commitment to improving transport and giving local leaders greater control over investment, with up to £45 billion investment for Northern Powerhouse Rail. This will include improved connections between Liverpool and Manchester, while Liverpool City Region and Greater Manchester will benefit from more than £4 billion in transport funding. New powers over business rates and a share of income tax receipts will give our city region greater flexibility to invest in its own economic priorities.
I know that many families across Liverpool Garston are still feeling the pressure of rising prices and that there is much more to do. The damage caused by years of economic instability and underinvestment cannot be put right overnight. But this Budget makes responsible choices, protects working people from increases in the main rates of tax, provides immediate help with bills and backs the investment needed to grow our economy. That’s the difference Labour makes in Government.
You can read the budget document at: Budget 2026 – Breathing Space for today, Fresh hope for the future