Justin Heath, our Director of Corporate Affairs, summarises recent media and industry commentary into key expectations for the UK’s autumn 2026 budget statement – with an emphasis on the energy, green-tech and sustainable infrastructure sectors.
On Wednesday 28 October, John Healey will deliver his first budget as chancellor of the exchequer. This will be the most significant signpost so far of the priorities of Andy Burnham’s government and its ongoing economic approach. Just after the budget announcement (assuming 2025 was an unfortunate exception), the government will also publish the Office for Budget Responsibility’s latest economic and fiscal forecasts. These are the first since the Iran war triggered exponential increases in worldwide energy prices and associated macro-economic challenges for government treasuries across the globe. Healey faces pressure to balance rising inflation and a national debt surpassing £3 trillion.
According to PwC, the 2026 UK Autumn Budget is expected to be a cautious, fiscally disciplined statement focused on rebuilding the government’s limited financial headroom, maintaining business confidence, and supporting growth – rather than delivering significant tax cuts or spending increases.
The Telegraph outlines that weaker than anticipated GDP growth and increased cost of borrowing due to the Iran war have eroded as much as £14 billion of the Chancellor’s wiggle room in the Budget. This means he must either borrow more, cut spending, or raise taxes to keep the public finances in order.
This article, in Which, suggests that the budget will “move money and power out of Westminster and into every postcode around Britain.” It also highlights measures already announced by the Prime Minister, including the temporary removal of VAT on electricity bills, a £2 bus fare cap, and proposals giving regional authorities a greater share of tax revenues.
Meanwhile, it is widely anticipated that the budget will provide more detail on the £10.3 billion to be reprioritised to the Defence Investment Plan from other government departments.
DESNZ is a significant casualty of the Defence Investment Plan, with Energy Secretary Miatta Fahnbulleh tasked to save over £2 billion from her budget. The Guardian cites sources that say a significant proportion will come from cutting hundreds of millions of pounds from the £2.7bn, five-year boiler upgrade scheme – with a particular impact on heat pump subsidies. A DESNZ spokesperson is quoted as saying “We will set out how we will fund essential investment in our national security this autumn” so it would be reasonable to expect further detail of this and other DESNZ cuts in the budget statement.
These could also include reduced funding for Carbon Capture & Storage (CCS). Politico reports that in response to a recent question about the future of the CCS programme, Martin McCluskey, Parliamentary Under-Secretary of State in DESNZ said: “I’m not betraying any confidences when I say that we are having to make some difficult decisions because of what happened as a result of the defence investment plan.”
This article on carwow suggests the budget could bring important changes for motorists, particularly around EV adoption and driving costs. Key areas to watch include a possible reduction in VAT on public EV charging – to narrow the gap with home charging – further details on the planned pay-per-mile road tax for EVs from 2028, and decisions on future fuel duty rates beyond 2026.
In breaking news, the 21 October approval of production from the North Sea’s Jackdaw gas field was accompanied by an announcement from John Healey of a new £2billion Energy Wealth Fund to finance renewable energy projects and support Britain’s transition to low-carbon power. Further detail may well be provided in the budget.
Britain’s Gas System Operator, National Gas, has published the priorities it would like to see addressed on 28th October, including:
Global auditing firm, RSM, highlights industrial energy costs as the number one issue for manufacturers and wonders whether the chancellor may remove energy policy levies (such as the Climate Change Levy). They also suggest that the British Industrial Competitiveness Scheme (BICS) could be expanded to ensure more manufacturers qualify for much-needed relief from high energy prices.
Finally, on the consumer front, Bloomberg flags that Healey is due to unveil more support for household energy costs this winter, partly through the existing warm homes discount.
Keep an eye out on Resonates’ website for further budget commentary.
Visit key government resources for official budget announcements on the day:
Tune into major broadcasters for live budget reportage, e.g.
Consider some of the many post-budget events from key trade bodies and industry advisors, e.g.
