Budget live: All the latest as Healey delivers his first Budget

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1:21 p.m.: New founder’s relief announced on capital gains tax

Healey has announced a new capital gains tax relief aimed at entrepreneurs, offering a 10% rate on lifetime gains of up to £10m for founders of successful businesses.

The chancellor framed the measure as recognition of the risk taken by those who leave secure employment to build a company from scratch. “When business founders take that risk, build an exceptional company, create wealth for Britain, we should recognise that success and keep those people here to invest again,” he told the Commons.

For the mortgage market, the announcement is noteworthy. Entrepreneurs and business founders represent a significant share of complex mortgage cases – often self-employed borrowers with variable income whose tax position directly affects affordability assessments. A reduced CGT burden on exit could encourage more founders to reinvest in property, potentially increasing activity in the higher-value residential and buy-to-let markets.

1:17 p.m.: Cash ISA allowance held at £20,000

Healey has confirmed the government will not proceed with a planned cut to the cash ISA allowance, which will remain at £20,000 annually. The chancellor also announced plans to work with the sector on a new "Starter ISA" aimed at making investment more accessible.

Neil Jones, tax and wealth planning specialist at Standard Life, welcomed the decision, saying it would spare savers a 40% reduction in the amount they can save tax-free in cash each year. "Cash plays an important role in helping people build financial resilience and meet unexpected costs, so retaining the existing limit preserves choice over how people manage their savings," he said.

However, Jones cautioned against over-reliance on cash savings. "Inflation can quietly eat away at its spending power if interest rates fail to keep pace with rising prices. What £100 bought five years ago would cost around £129 today, illustrating why savers need to think not just about protecting their money, but about its potential to grow over the longer term."

On the broader challenge facing the government, Jones added: "Rather than restricting the role of cash, the longer-term challenge is giving more people the confidence to invest where it is appropriate for them, while preserving choice for those whose circumstances or attitude to risk mean cash is the right option."

1:12 p.m.: New data centre covenant announced – with implications for mortgage industry

Healey has turned to artificial intelligence, announcing an additional £500m for AI safety and security and setting out a new British data centre covenant that will require data centres to meet strict standards before operating in the UK.

The chancellor said the government must "seize the opportunities and guard against the risks" of AI, adding that where the NHS and armed forces use AI tools, he wants that data held on British soil.

For the mortgage industry, the data centre announcement carries real significance. The sector has seen rapid growth in AI-driven mortgage processing, affordability tools and broker platforms – all of which depend on secure, UK-based data infrastructure. A clearer regulatory framework around data centres could accelerate lender and fintech investment in those tools, with knock-on benefits for brokers and borrowers alike.

1:05 p.m.: Banks to face 3% surcharge increase from January

Healey has turned to the banking sector, announcing that banks will pay an additional 3% on the bank surcharge from January 2027 – a measure he described as time-limited, lasting 15 months, to help fund the government’s immediate energy bill support package.

Striking a conciliatory tone, Healey said he “celebrates and is grateful” for the role banks play in the economy, but made clear that amid “global economic storms” he was looking to the sector to help shoulder some of the burden.

As brokers warned earlier today, any increase in banks’ costs risks finding its way through to mortgage pricing, making this one of the most closely watched announcements of the afternoon for the lending industry.

12:57 p.m.: Twenty million households to receive £100 energy payment

Healey has announced a £100 household energy payment this winter for the approximately 20 million households in council tax bands A to D. The payments will be made directly into bank accounts to help with rising energy bills, with the scheme costing £2.6bn in total.

The chancellor said the payment would help “take the pressure off in the coldest months and see people through to the spring.” The Scottish, Welsh and Northern Ireland governments will receive a share of the funding, with Healey calling on devolved administrations to follow suit and give people across all nations of the UK relief on their energy bills.

12:54 p.m.: VAT cut on electricity extended to July

Healey has confirmed the government will extend the VAT cut on electricity through the winter and spring until July, a move he said will take £50 off the annual energy price cap for households.

The chancellor also confirmed that the removal of the gas standing charge – announced earlier today – will come into effect from next year, with similar reforms to electricity standing charges to follow.

12:51 p.m.: OBR upgrades growth forecast to 1.2%

The OBR has upgraded its growth forecast for the UK economy to 1.2% this year, Healey has told the Commons – a figure he said is supported by similar upgrades from both the Bank of England and the International Monetary Fund (IMF) earlier this month.

Healey acknowledged that “real challenges ahead” remain, but struck a defiant tone, arguing that Britain has “beaten the forecasts this year” and can do so again. He said he was acutely aware that many people feel the country is not working for them, and framed today’s statement as an opportunity to give them “breathing space.”

On energy, Healey confirmed the approval of the Jackdaw gas field, saying the development would boost the country’s energy security and add £2.9bn to the UK economy.

12:42 p.m.: £14bn extra debt interest bill blamed on global instability

Healey has pointed to the war in the Middle East as a key driver behind a deterioration in the public finances, with the Office for Budget Responsibility (OBR) forecasting the government will spend £14bn more on debt interest this year than previously anticipated.

The chancellor said the conflict had pushed up oil and gas prices, driving inflation higher and squeezing both households and businesses. He described the current environment as “global economic storms” – and was clear that the consequences are being felt in the public finances as much as on family budgets.

12:36 p.m.: Healey opens with pledge of fiscal discipline

Healey has opened his Budget speech by framing today’s statement as one built on financial responsibility, describing it as a Budget for working people and British businesses of all sizes.

He said the statement would give Britain some “breathing space” – signalling that the government is prioritising stability over spending in its first major fiscal event.

12:32 p.m.: Healey on his feet

Chancellor John Healey has risen in the House of Commons to deliver his first Budget – and one of the most consequential fiscal statements for the UK mortgage market in years.

12:25 p.m.: Inflation in focus – the backdrop to today’s Budget

One of the key pressures bearing down on today’s Budget is inflation. The Consumer Prices Index (CPI) rose to 3.5% in the year to September 2026 – its highest level in almost a year, according to the Office for National Statistics (ONS) – well above the Bank of England’s 2% target. Rising fuel costs were the primary driver, with motor fuel prices up 30% in the year to September.

For the mortgage market, elevated inflation complicates the path to lower rates. The Bank of England cannot cut aggressively while prices are climbing, and any Budget measures that add further inflationary pressure could push back expectations of relief for borrowers.

Here is how CPI inflation has moved over the past 12 months, according to ONS data:

Source: Office for National Statistics (ONS). Row colour reflects direction of change: red = rise, green = fall, grey = unchanged.

12:15 p.m.: ‘We need housing supply’ – broker calls for planning reform

Josh Quinn, speaking to Mortgage Introducer ahead of the Budget, offered a measured take on Your First Home, describing it as a “carbon copy” of Help to Buy – and warning that the scheme risks inflating new-build prices without solving the underlying supply problem.

“When the Help to Buy scheme was out there boosting house prices, that wasn’t the only thing that was affecting house prices at that moment in time. You had interest rates sitting around 1%. You had stamp duty freezes all coinciding with each other,” Quinn said.

His central message to the chancellor is simple: supply is the issue no housing scheme will solve on its own. “We need housing supply,” he said.

12:05 p.m.: Your First Home – a step forward, but millions remain locked out

One of today’s expected centrepiece announcements is further detail on the government’s Your First Home scheme. Tom Eyre, co-founder and chief executive of Loqbox and a member of the Credit Information Governance Body, told Mortgage Introducer the scheme will help some – but far from all.

“Your First Home will help a subset of first-time buyers,” he said. “For people with good affordability who would otherwise have spent three, four or five years saving for a deposit, it brings home ownership forward, and that’s welcome. But this isn’t a single solution for the housing crisis, and there rarely is one for a problem this complicated.”

Eyre warned that the scheme’s restriction to new-build properties and what appears to be an employment requirement will further limit its reach. “There just aren’t that many new-build homes available, and the new-build homes that are available, a very small proportion of them I would describe as being affordable for first-time buyers.” For the estimated four to five million people in the UK with little or no credit history, he added, the scheme changes nothing at all.

12:00 p.m.: Where does the Bank of England stand heading into the Budget?

With Healey due on his feet in 30 minutes, it is worth taking stock of where the Bank of England’s Monetary Policy Committee (MPC) currently sits – because what the chancellor says today could directly influence its next move.

The MPC has held the base rate at 3.75% for six consecutive meetings, following two cuts of 25 basis points in August and December 2025. Its next decision is on 5 November – just eight days away – and today’s Budget could yet shape the direction of travel.

A Budget that stokes inflation fears could prompt the MPC to hold or slow the pace of future cuts. One that steadies markets could keep the path to further reductions open.

Source: Bank of England

11:50 a.m.: Banks in the firing line – but brokers warn the cost will pass through

Early signals suggest Healey may target banks rather than individual landlords for new revenue measures today – a development Jeni Browne, sales and marketing director at Mortgage Finance Brokers, cautiously welcomes, while flagging the downstream risk.

“It sounds like they’re going to be gunning for the banks rather than the individuals, which on first thoughts is quite welcome,” she told Mortgage Introducer. “But there’s obviously going to be implications if banks’ costs go up. They’ve got to pay for that from somewhere, which invariably at some point will impact mortgage rates – so it’s kind of like delayed gratification almost.”

Browne also captured the broader anxiety in the buy-to-let market ahead of the speech. “Landlords are always very, very nervous of the Budget because irrespective of what people say up front, there’s no guarantees. Just because it hasn’t been rumoured, it doesn’t mean some little bombshell is not going to suddenly appear from nowhere. Section 24 came in and no one was expecting it, and then it just landed.”

11:40 a.m.: Early signs ahead of the Budget

With the chancellor due to speak in under an hour, a number of measures are already emerging. Here is what looks relevant to the mortgage and property market.

Banks facing higher taxes: Senior banking executives have told the BBC they are expecting the chancellor to increase taxes on the sector today. The UK’s four biggest banks collectively made approximately £15 billion profit in the first half of this year. The banking trade body UK Finance has warned that further tax increases would “weaken competitiveness” and “discourage investment and job creation.” For brokers and borrowers, the concern is straightforward – higher costs for banks tend to find their way through to mortgage pricing.

Gas standing charges to be scrapped: The government has confirmed it will remove fixed standing charges from household gas bills, with Ofgem aiming to deliver the change in 2027. The Treasury estimates around 60% of households will save an average of £45 per year. While modest, any reduction in household outgoings is relevant to mortgage affordability assessments.

11:35 a.m.: What is the Budget and what's at stake for the mortgage industry?

The Budget is the government's annual statement on its tax and spending plans for the year ahead, delivered by the Chancellor of the Exchequer to the House of Commons. It sets out how the government intends to raise money and where it will spend it – and the decisions made can have far-reaching consequences for the mortgage market.

For brokers and lenders, today's announcement matters on several fronts.

Mortgage rates: The Budget doesn't set mortgage rates directly, but it can move them quickly. Government borrowing plans influence gilt yields, which in turn affect swap rates – the wholesale funding costs that lenders use to price fixed-rate mortgages. A Budget that unsettles financial markets could push rates higher within days; one that reassures investors could help bring them down.

Your First Home: The government's new equity loan scheme – which would allow first-time buyers to purchase a new-build property with a deposit as low as 2.5%, backed by a 20% government loan – is expected to be confirmed in full today. The detail on income caps, property price limits and lender participation will be critical.

The private rented sector: Landlords are bracing for further announcements affecting buy-to-let, from capital gains tax to property surcharges. Capital gains tax is widely expected to be held at current levels, but further surprises cannot be ruled out.

Housing supply: Healey is expected to announce additional funding for affordable housing – but brokers say supply remains the industry's most pressing long-term problem.

We'll be across all of it as the afternoon unfolds.

11:30 a.m.: We’re live!

Welcome along to today’s Budget live blog with Mortgage Introducer! Stay tuned as we bring you all the updates from what promises to be one of the most consequential days for the UK mortgage market in years.

Chancellor John Healey will deliver his first Budget at approximately 12:30pm today, following Prime Minister’s Questions at midday, and we have you covered with all the latest announcements and reaction from across the mortgage industry.