Budget 2026 live: gas standing charges to be scrapped for millions as chancellor prepares to deliver budget

Good morning. When Andy Burnham became PM, he signalled that he wanted to end 40 years of neoliberalism. Judging by all the briefing about what will be in the budget today, neoliberalism is probably safe for another year or so because Burnham and his chancellor, John Healey, have decided not to use this as a moment for big, transformative change, but to instead opt for a more low-risk, every-little-bit-helps fiscal statement. There are radical elements in the Burnham agenda, but mostly they will have to wait for another day. In a video setting the scene for the budget, Healey sums it up with the slogan: “Breathing space today, and fresh hope for the future.”

Here is Pippa Crerar and Heather Stewart ’s overnight splash story previewing the budget.

And here is an analysis by Phillip Inman setting out the main items we are expecting.

Every chancellor, though, likes to have at least one big surprise for the speech. This is the headline they want for tomorrow’s papers. We don’t know yet what Healey has chosen, but there is a lot of speculation that it will involve energy bills.

We have already had an announcement from the Treasury at 7am this morning about standing charges being removed from gas bills. Julia Kollewe has the story here.

According to the Treasury, this could save around 60% of families around £45 a year. It says:

The chancellor will announce today an end to this unfair and outdated practice. He will ask Ofgem to deliver removal of these charges – which are £108 a year for the typical household on average – in 2027 or as soon as possible after.

Instead, these fixed costs will be paid on the unit rate, which could save 60% of account-holding households around an average of £45 off their annual bill.

While this might sound like a modest cost of living measure – almost an “everyday fix” – Burnham and Healey – perhaps sensitive to the charge that there is not much radicalism in the budget – are presenting this as the start of something more ambitious. In a statement this morning, Burnham said this shows he’s “determined to reform our broken energy market” and Healey says:

My budget will draw a line in the sand on an energy policy that has failed British billpayers for years, letting extra costs on bills pile high and leaving households even more exposed to global shocks.

Healey is speaking at 12.30pm. We have also got PMQs today, but I will mostly be focusing on the budget, with reaction and analysis, and Graeme Wearden , who writes the Guardian’s business live blog, will be joining too to provide added firepower.

8.45am: Andy Burnham chairs cabinet, where John Healey, the chancellor, will brief ministers on what’s in the budget.