Personal Money · Sunday, 25 October 2026

01 Briefing what happened

Days before his first Budget, UK chancellor John Healey promises 1bn pounds more for social and affordable homes in England and a 1.5bn-pound borrowing fund for mayors

Wednesday's Budget will add more than 1bn pounds for low-rent homes and give England's mayors more money and the power to borrow, while the taxes still on the table raise little.

1bn+ pounds

more for social and affordable homes in England in Wednesday's Budget

It lifts the UK government's ten-year homes programme past 40bn pounds. [1]

1.5bn pounds

a fund England's mayors can borrow from, starting in 2028

Mayors in England have little power to borrow, unlike US cities, which sell their own bonds. [2]

1.34m

households in England waiting for a social home

That was the count in March 2025, the latest the UK government has published. [3]

285m pounds

of seed money for local leaders next year

It tides them over until some income tax goes straight to their areas in 2028. [2]

The lead story — what happened

John Healey, the UK chancellor, gives his first Budget on Wednesday 28 October. The Budget is the yearly speech where the UK government sets taxes and spending. [1][4]
This weekend the UK Treasury, which runs the government's money, said the Budget will add more than 1bn pounds for social and affordable homes in England. [1]
That takes the UK government's ten-year homes programme past 40bn pounds. [1]
Social rent means a home let at about half the usual market rent, with strict rules on who can apply. [3]
In August ministers named where the first 70,000 homes from the programme would go, and 60% of them were for social rent. [3]
1.34 million households in England were on waiting lists for social housing in March 2025, the latest UK government count. [3]
Councils will be able to borrow from the UK government at lower interest rates than usual to build homes. [1]
England's mayors, the elected leaders of its city regions, get 285m pounds of seed money next year to spend on their own choices. [1][2]
From 2028 they also get a 1.5bn-pound fund to borrow from, and some of the income tax raised in their areas will go straight to them. [1][2]
The UK Treasury says this means less money handed out through 'fragmented bidding pots', where each area competes for each project. [1]
Another 150m pounds will help councils hire the skills to run bigger budgets, because UK Treasury officials doubt some can cope. [2]
Separately, the UK Treasury's adviser on new businesses, Alex Depledge, said she will quit, saying start-ups were treated as a 'sideshow'. [1]

Seed money for local leaders, next year285 m pounds

Extra for social and affordable homes1,000 m pounds

Borrowing fund for mayors, from 20281,500 m pounds

The three sums the UK Treasury announced on Saturday for England, in millions of pounds.

Who is involved

John Healey

the UK chancellor, who runs the government's money; he gives his first Budget on 28 October
Andy Burnham

the UK prime minister and a former mayor of Greater Manchester; he says local leaders should stop going 'cap in hand' to the government
Claire Ward

the Labour mayor of the East Midlands, who chairs the UK Mayors Network; she welcomed the plan
Alex Depledge

the Treasury's adviser on new businesses; she is leaving the day after the Budget

How it unfolded

Aug 2026 Ministers name where the first 70,000 homes from the 39bn-pound programme will go. [3]
24 Oct The UK Treasury says the Budget adds more than 1bn pounds for homes and new money for mayors. [1][2]
28 Oct Healey gives his first Budget. [4]
2028 The 1.5bn-pound borrowing fund and the income tax share for local areas begin. [1][2]

Where this points

The test is Wednesday's Budget, on 28 October: whether it says how many homes the extra 1bn pounds will build, and which taxes pay for it. [1][4]

Signals on this beat

The bar and the word are our reading of how hard each one is pushing, and the arrow is where it is heading.

Taxes the chancellor cannot raise High↑

The BBC counts at most 3.5bn pounds a year from three smaller taxes the chancellor could raise. [5] A smaller tax-free allowance helped push capital gains tax receipts up nearly 80% in a year. [6] Small firms say the 2024 rise in employers' National Insurance still stops them hiring. [9]

Borrowing getting dearer High↑

An Ipswich family's mortgage rate could jump from 1.4% to about 5.3% when their fixed deal ends. [8] Higher interest on the UK's own debt may have halved the chancellor's 24bn pounds of spare room. [4] Savings locked away for a year or longer now pay up to 5.37%. [11]

US health cover shrinking Building↑

Next year 193 US counties will have no private plan for Medicare, the US health cover for over-65s, up from about 120. [12] More than 281,000 legal immigrants in nine states and Washington DC were expected to lose Medicaid, the cover for people on low incomes, in October. [14]

Families making do Steady→

55% of adults in Britain said in August that their cost of living had risen in a month. [8] Parents are swapping Halloween costumes and buying them second-hand. [19] A gift appeal in Jersey, a Channel island, says more families ask for help each year. [20]

The rest of the day

16 more stories on this beat.

Each with its own sources. None of these is a link to the story above.

02
Energy help may be about 1.5bn pounds

Healey is likely to offer a modest energy support package of perhaps 1.5bn pounds, aimed at those who need it and for a limited time, the Guardian reports. [4] He is expected to raise a few billion pounds in taxes, including on banks, and give some back to households. [4] The Bank of England, the UK's central bank, is widely expected to raise interest rates the week after the Budget. [4] The cap on household energy prices may rise by another 16% in January. [4]

Why it matters — A rate rise would hit people with mortgages, the Guardian says. [4] Inflation is expected to top 4% in the new year, so the help would have to stretch through rising prices. [4]
03
Smaller taxes add up to 3.5bn pounds at most

BBC Verify, the BBC's fact-checking team, added up three taxes Healey could raise without touching income tax, National Insurance or VAT rates. [5] Raising the extra tax banks pay on profits from 3% to 5.5% could bring in 1bn to 2bn pounds a year. [5] Doubling the tax on gambling machines from 20% to 40% could raise 275m to 460m pounds. [5] Making sites such as Amazon and eBay collect VAT could raise about 1bn pounds. [5] Together that is about 3.5bn pounds at most. [5]

Why it matters — Economists think the chancellor's spare room under his own borrowing rules may have fallen from about 24bn pounds to as little as 11bn. [5] Three small taxes cannot fill a gap that size, and the BBC lists cutting benefits as the fourth option. [5]
04
Capital gains tax raises 80% more

Capital gains tax is the tax on the profit from selling something that grew in value, such as shares or a second home. [6] It raised 24.3bn pounds in the 2025-26 tax year, up from 13.7bn the year before, the Guardian reports. [6] Its tax-free allowance was cut from 12,300 pounds to 3,000 pounds, and its rates rose in 2024. [6] Partly because of the smaller allowance, payers rose 45% in a year, to a record 584,000. [6]

2024-2513.7 bn pounds
2025-2624.3 bn pounds
Capital gains tax collected in the UK in two tax years, in billions of pounds.

Why it matters — Income tax, by comparison, is paid by more than 34 million people. [6] Nearly half of capital gains tax still comes from gains of 5m pounds or more, and Healey is reported to have turned down calls to raise its rates. [6][7]
05
Pensions enter inheritance tax in 2027

Inheritance tax is a 40% tax on what a person leaves above a tax-free amount of 325,000 pounds. [6] It raised a record 8.5bn pounds in 2025-26, and about 5% of estates pay it. [6] From April 2027, money left in a pension savings pot at death will count towards it for the first time. [6] UK government figures expect 10,500 estates to pay that did not before, and 38,500 to pay more. [6]

Why it matters — The average bill for those estates rises by about 34,000 pounds once pensions count. [6] Morningstar, an investment research firm, says the tax could be reshaped to pay for social care, perhaps with a 10% charge on every estate. [7]
06
A family's mortgage could rise 250 pounds a month

Dawn Fazackerley-King and her husband in Ipswich earn about 70,000 pounds a year between them. [8] When their fixed mortgage deal ends, its rate could rise from 1.4% to about 5.3%, adding about 250 pounds a month. [8] In August, 55% of adults told the UK statistics office their cost of living had risen in the past month, against 79% in April. [8] Food, fuel and energy were the most common reasons. [8]

1.4%Rate on the fixed deal now
about 5.3%Rate on the next deal
The same home loan, before and after the fixed deal ends. The gap is about 250 pounds more every month for this family.

Why it matters — The UK's budget watchdog expects household income after tax and prices to grow 0.75% a year to 2030, against 3% a year from 2000 to 2007. [8] Dawn says there is 'no more fat to trim'. [8]
07
Small firms hold back on hiring

A publisher in Tavistock, Devon, told the BBC he is not filling two jobs because hiring costs too much. [9] Since April 2025 employers pay National Insurance, a tax on pay, at 15% on wages above 5,000 pounds, up from 13.8% above 9,100 pounds. [9] The minimum wage for over-21s rose to 12.21 pounds an hour at the same time. [9] Hotels in Plymouth want VAT on hospitality cut from 20% to 10%. [9]

Why it matters — The publisher says these costs mean firms like his are not employing young people. [9] The UK Treasury points to tax relief for firms hiring workers under 21 and apprentices under 25. [9]
08
Students can leave rentals on two months' notice

The Renters' Rights Act, in force in England since May, ended fixed-term tenancies with private landlords. [10] Eddie Lever, 20, left a house in Exeter on two months' notice to start a new course in York. [10] University halls and purpose-built student blocks are exempt. [10] The National Residential Landlords Association, which speaks for landlords, warns student houses may now sit empty over summer. [10]

Why it matters — Some landlords may raise monthly rents to cover empty months, or stop letting to students. [10] Sue Lawes, who lets three houses in Norwich, has moved her tenancies to start in August to cut that risk. [10]
09
Instant-access savings stuck at 2.53%

The average UK savings account that lets you take money out at any time has paid 2.53% since July, Moneyfacts figures show. [11] Moneyfacts is a firm that tracks savings and loan deals. [11] Fixed-term bonds, where the money is locked away, have risen steadily since March, and the best now pays 5.37%. [11] The Bank of England's own rate has been 3.75% since December 2025. [11]

Why it matters — Banks pay more for money when they know how long they can use it, Which? explains. [11] Some higher-paying accounts limit withdrawals to three a year, or ask for 95 to 150 days' notice. [11]
10
Private Medicare plans close in 193 US counties

Medicare is US government health insurance for people 65 and over, and Medicare Advantage is the version run by private insurers. [12] More than half of Medicare's 70 million members choose it. [12] Insurers are leaving many areas, and 193 counties will have no such plan next year, up from about 120. [12] At least 2 million people may lose their plan, and some estimates reach 5 million. [12]

Last year120
Next year193
US counties where no private Medicare plan will be offered. Last year's figure is approximate.

Why it matters — People whose plan ends can switch to traditional Medicare and buy extra cover without the usual health checks. [12] Insurers may now cap sign-ups to some plans, so those who wait may find them full before open enrollment ends on 7 December. [12]
11
Legal immigrants lose US Medicaid

Since 1 October many immigrants living legally in the US no longer qualify for Medicaid, the government health cover for people on low incomes. [13] They include refugees, people granted asylum and victims of sex trafficking, under the Republicans' 2025 tax law. [13][14] Nine states and Washington DC expected more than 281,000 to lose cover in October, nearly 177,000 of them in Florida. [14]

Why it matters — The same law cuts Medicaid spending by about 900bn dollars through 2034. [13] Next year it also takes many immigrants off health-plan subsidies and Medicare. [14]
12
Sam Fender says his ticket prices will change

Sam Fender, a British singer, told fans on Instagram that prices for his 2027 stadium tour are 'getting changed'. [15] Standing tickets at Wembley had been split into front standing at 130.75 pounds and standing at 98.85 pounds. [15] He said prices should only rise with the cost of putting on the show. [15] Tickets are due to go on sale on Friday, after a presale on Wednesday morning. [15]

Why it matters — Fender said the split between front and back standing 'won't be happening' on his tour. [15] Zara Larsson, a Swedish singer, also criticised the price of tickets for her own show in Bangkok in August. [15]
13
Grimsby spends money promised for ten years

Grimsby, once the world's largest fishing port, in Lincolnshire, is starting to spend 20m pounds from the UK's Pride in Place programme. [16] The programme gives 284 poorer communities up to 2m pounds a year for ten years, 5.8bn pounds in all. [16] It shares the money out using published data on need. [16] Earlier schemes put almost 12bn pounds into town centres in seven years without bringing widespread renewal. [16]

Why it matters — At least 1bn pounds of the 4.8bn-pound levelling up fund was still stuck in 2024, Power to Change, a campaign group, found. [16] A researcher at the Centre for Cities, a research group, says 20m pounds is unlikely to pay for buying and rebuilding large empty buildings. [16]
14
Three in ten money videos called misleading

Legalaes, an Estonian legal services firm, studied 1,764 money videos on YouTube, TikTok, Instagram and Facebook, Kiplinger reports. [17] It flagged 29% as misleading, using its own rules on promises and promotion rather than checking each fact. [17] Flagged videos averaged about 556,000 views, against 326,000 for the rest. [17] Only 2.2% of the 1,266 creators showed a financial qualification. [17]

Why it matters — A study by an education fund linked to FINRA, which oversees US brokers, found 61% of investors aged 18 to 34 had acted on a social media personality's tip. [17] That fell to 6% of those 55 and over. [17]
15
Entry jobs fall 40.6% in AI-exposed New York work

Entry-level job postings in design, media and writing fell by 40.6%, a report from the Partnership for New York City found. [18] The partnership is a business group, and it found starter jobs shrank most in the work most exposed to AI. [18] A call-in show on Twitch, a live video site, now gives job seekers advice. [18] One caller, Hans Romine, had one interview from about 50 applications. [18]

Why it matters — The Schultz Family Foundation, which backs the show, says AI is an extra barrier for young people looking for work. [18] Romine got a job after the hosts told him to talk up his months at a research station in Antarctica. [18]
16
Families swap Halloween costumes

A survey found 36% of UK shoppers plan to celebrate Halloween this year, up from 27% in 2025, the BBC reports. [19] Many parents now swap costumes in Facebook groups or buy them second-hand. [19] Mandy Thomas, a mother in Birmingham, says she usually pays a quarter of the original price on eBay or Vinted. [19] An RSPCA charity shop in Coventry saves donated costumes all year for October. [19]

Why it matters — Most costumes are worn a handful of times, so buying used costs less and leaves less waste. [19] Some businesses told the BBC Halloween now matters more to them than Christmas. [19]
17
More Jersey families ask for Christmas gifts

The Christmas Kindness Appeal Jersey collects donated presents for children up to 18, in Jersey, a Channel island. [20] Its organiser, Charlotte Riley, says more families ask for help every year since it began in 2024. [20] She names unemployment, illness and the high cost of living as the reasons. [20] Donations close on 14 November. [20]

Why it matters — More people are also offering to help, including some who received gifts in earlier years. [20] The appeal gives parents wrapping paper and labels so they can wrap the gifts themselves. [20]

02 Lesson why it matters

Why the taxes a chancellor can still raise bring in so little

A tax brings in its rate times what it is charged on, so a tax on a few banks or gambling machines raises little.

The twist

A promise about tax rates leaves the tax-free limits free to move. Lower an allowance, or count a new kind of wealth, and the same rate collects far more.

The picture

Bank tax rise, top estimate2 bn pounds

VAT collected by marketplaces1 bn pounds

Gambling machine tax doubled, top0.46 bn pounds

Capital gains tax, 2025-2624.3 bn pounds

Money a year, in billions of pounds, using top estimates. The first three are narrow taxes the chancellor could raise; the last is capital gains tax after its allowance was cut.

How it works

A tax brings in its rate times the amount it is charged on
Income tax reaches more than 34 million people, so even a small change to it moves large sums
Labour promised not to raise the rates of income tax, National Insurance or VAT
The taxes left reach a few banks, betting shops or online marketplaces
So bigger sums come from widening a tax: a lower allowance, or a new kind of wealth counted

The same force, elsewhere today

Where this chain is also running, in today's other stories.

Smaller taxes add up to 3.5bn pounds at most

Each of the three falls on a narrow group, such as banks, betting-shop machines or online marketplaces, so together they raise at most 3.5bn pounds a year.
Capital gains tax raises 80% more

The tax-free allowance fell from 12,300 to 3,000 pounds, and the number of people paying rose 45% in a year, to 584,000.
Pensions enter inheritance tax in 2027

The 40% rate stays the same; counting unspent pensions brings 10,500 more estates inside the tax.
Small firms hold back on hiring

Besides a higher rate, the employers' starting point fell from 9,100 to 5,000 pounds, so the tax reaches more of every wage, and a Devon firm leaves two jobs empty.

Where you've seen this

A school bake sale

50p from each of 300 families raises more than 20 pounds each from the five richest

A streaming service

a small price rise for millions of members brings in more than a big fee on a rare extra

A club's membership

lowering the age for paying full fees adds more money than doubling the fee for one small group

The catch

A wide tax is not painless: a rise in VAT reaches the poorest shoppers too, and a lower allowance pulls in people who never thought of themselves as taxpayers.

And the whole of it

Most households sit inside several of these taxes at once: as workers paying National Insurance, as shoppers paying VAT, and one day as heirs. When the rates are promised, a change can still come by moving a tax-free limit, and a family first sees it on a payslip or a bill.

03 Truth what's really going on

What is really going on

John Healey must find money for energy help and defence while the rates of income tax, National Insurance and VAT stay off limits, and the BBC counts at most 3.5bn pounds a year from the smaller taxes in play. [5][4] So the UK Treasury spent the weekend before the Budget announcing spending: 1bn pounds more for homes in England and new money and borrowing power for mayors. [1][2]

Why it works on us — Spending news let out days early gets its own headlines, while a tax change arrives on Budget day as one line among many.

Who gains

England's mayors and councils — They get 285m pounds next year, a 1.5bn-pound borrowing fund from 2028 and cheaper government loans to build homes. [1][2]
The UK Treasury — A smaller tax-free allowance helped capital gains tax bring in 24.3bn pounds, up from 13.7bn. [6]
Savers who can lock money away — The best fixed-term bond pays 5.37%, while the average account that lets savers take money out at any time pays 2.53%. [11]
Students renting privately in England — They can leave a tenancy on two months' notice instead of paying for a full academic year. [10]
Older Americans with an existing illness whose plan is closing — They can buy extra cover for traditional Medicare without the usual health checks. [12]

Who pays

Families whose fixed mortgage deal is ending — An Ipswich family's rate could rise from 1.4% to about 5.3%, about 250 pounds more a month. [8]
Small employers and young job seekers — Employers pay National Insurance at 15% on wages above 5,000 pounds, and a Devon publisher is leaving two jobs empty. [9]
Estates with money left in a pension — From April 2027, 10,500 more estates will pay inheritance tax, and bills for those affected rise by about 34,000 pounds on average. [6]
Legal immigrants in the US, including refugees — They lost Medicaid from 1 October, nearly 177,000 of them in Florida alone. [14]
Older Americans in rural counties — 193 counties will have no private Medicare plan next year. [12]

What nobody knows yet

Open questions from across today’s stories — ours included.

01

How many homes the extra 1bn pounds will build.

The UK Treasury gave a sum and no count of homes, and the first 70,000 homes came from an earlier share of the programme. [1][3]
02

Which taxes rise on Wednesday to pay for it.

Bank bosses expect a higher bank tax, but the UK Treasury says it does not comment on speculation before the Budget. [5][9]
03

How big the energy help will be.

The Guardian puts it at perhaps 1.5bn pounds, and the UK Treasury has not confirmed any figure. [4]
04

Whether the Bank of England raises interest rates the week after the Budget.

A rise is widely expected, but the Bank decides at its own meeting after the Budget. [4]
05

Whether student rents in England go up.

Landlords are treating this year as a test, and so far there are warnings and no figures. [10]
06

How many older Americans lose their private Medicare plan.

Estimates run from at least 2 million to 5 million, and the count will only be known after sign-ups end on 7 December. [12]
07

How many legal immigrants have actually lost Medicaid.

States will not have final numbers until later this autumn. [14]
08

What Sam Fender's new ticket prices will be.

He said the prices will change but has not published new ones. [15]
09

How many money videos are really wrong.

The Legalaes count used rules about promises and promotion, not a check of each claim, so a flagged video is not proven false. [17]

04 Hope carry this

Eddie Lever, a student in Exeter, could switch to a course he wanted in York because a new law lets renters in England leave a home on two months' notice.

Also true today

Older Americans whose private Medicare plan is closing can switch to traditional Medicare and buy extra cover without the health checks that usually shut out people with an existing illness.
Hans Romine, an architecture graduate who got one interview from about 50 job applications, landed a job after advice from a call-in show on Twitch.
In Jersey, some families who were given Christmas presents by a local appeal in earlier years now collect gifts for other families.