Autumn Budget 2026

The 2026 Autumn Budget comes amidst international conflict and global insecurity. This has driven up costs for families and businesses across Cornwall.

John Healey took some actions in the budget to ease that pressure. This includes extending the 0% VAT rate on electricity until July, as well as a £100 Household Energy Payment for residents in Council Tax Bands A-D. This payment will be made directly into bank accounts in January and will benefit 37,440 properties across Truro and Falmouth.

The Budget also freezes fuel duty and extends the 5p cut through to the summer, while introducing more generous mileage rates for people who use their own vehicles for work. In addition, £100 million will be provided to local authorities to support households facing the greatest hardship. Domestic gas standing charges will also be abolished, creating a fairer system where bills better reflect actual energy usage.

Retail, hospitality and leisure businesses will see their rates frozen in real terms, reduced or removed altogether. From April, the Small Business Rates Relief threshold will rise from £12,000 to £18,000, meaning that many retail, hospitality and leisure properties in the South West will pay no business rates at all. There will also be an additional 20% business rates cut for pubs and all but the largest live music venues.

An important announcement for Cornwall was the progress being made on devolution arrangements. New Good Growth Funding for Cornwall, developed in collaboration with No. 10 North, will give our local leaders greater power to invest in the priorities that matter most to our communities and Cornwall will become a single strategic authority. This is good news for Cornwall and builds on the £30 million Kernow Industrial Growth Fund announced last year. More details will come in a Delivery Plan that will be issued before Christmas