---
title: "Healey's First Budget: What Changes in Your Pocket From Wednesday"
description: "What John Healey's 28th October Budget could change: the £12,570 allowance, the electricity VAT cut ending in March, fuel duty and what is ruled out."
author: Dr Marina Nani (Editor-in-Chief)
date: 2026-10-25T14:46:58.622Z
updated: 2026-10-25T14:49:39.850Z
canonical: https://www.sovereignmagazine.com/article/healey-first-budget-personal-allowance-energy-vat
image: https://cdn.nanimediahouse.com/pexels-18729241.webp
categories: Economy
content_type: Analysis
region: United Kingdom
publication: Sovereign Magazine
access: members
about:
  - type: Person
    name: John Healey
    description: John Healey is a British Labour politician who became Chancellor of the Exchequer on 20 July 2026. He previously served as Defence Secretary and, earlier, as Housing Minister.
    jobTitle: Chancellor of the Exchequer
    worksFor: HM Treasury
    sameAs:
      - https://en.wikipedia.org/wiki/John_Healey
---

John Healey stands up in the Commons on Wednesday 28th October, shortly after Prime Minister's Questions, to deliver his first Budget as Chancellor and the first of [Andy Burnham's government](https://www.sovereignmagazine.com/article/burnham-devolution-mayors-income-tax-budget). The Office for Budget Responsibility publishes its new forecasts the same afternoon. By the evening, you will know whether the two promises that matter most to your monthly budget, a higher tax-free allowance and cheaper electricity, have money behind them.

Some options are already off the table. Healey has ruled out rises in the rates of income tax, employee National Insurance and VAT, in line with Labour's 2024 manifesto, and he has said the Budget will meet the government's fiscal rules.

## Your £12,570 tax-free allowance has been frozen since April 2021

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