Budget 2026: breathing space for Bexleyheath & Crayford
This week the Chancellor, Rt Hon John Healey MP, delivered his first Budget, and at its heart was a clear aim: to give working people some breathing space. Here are some of the announcements I was most pleased to see, and what they mean for our area.
Bringing down energy bills
We saw some welcome announcements in the budget including scrapping VAT on domestic electricity bills until 30 June 2027. The Government has been clear that all suppliers are expected to pass the VAT reduction on to all customers, including those on fixed tariffs, so 30 million households in Britain, will see a reduction in energy bills this winter. This is on top of the £100 support payments in January 2027 for over 29,000 households in Bexleyheath and Crayford to help with energy bills.
Backing our local businesses
Alongside colleagues in Parliament, I have continued to raise the pressures that local businesses are under. We saw welcome concessions earlier this year, and this Budget goes further in ways I believe will make a real difference:
• 400 retail and hospitality businesses in Bexleyheath and Crayford will no longer pay business rates.
• 97% of our local pubs will benefit from further business rates cuts.
• Over 2,000 small alcohol producers nationally will receive specific Business Rates Relief, helping local producers such as Bexley Brewery.
Keeping everyday costs down
• Fuel duty: the 5p cut has been extended, with rates frozen until July 2027.
• Prescriptions: NHS prescription charges are frozen at £9.90 for the third year in a row.
Finally, two more announcements which I was really pleased to see included the introduction of parental leave pay for self-employed fathers
- Paternity pay for self-employed fathers
Self-employed dads will now be able to receive parental leave pay, read more here.
- Ending the Carer’s Allowance cliff edge
The Government made a commitment to remove the cliff edge rule for Carer’s Allowance and replacing it with a tapered system by 2030. This is welcome news, as there was clear evidence of the detrimental impact this policy had on unpaid carers. The modernisation of the system will also reduce the risk of overpayments and provide greater predictability for carers in the calculation of their Carer’s Allowance.
