Breathing space for Scottish families and businesses at Budget

News story published by HM Treasury, Scotland Office on Wednesday, 28 October 2026 at 14:40 UK time · 2026 Burnham Labour government.

What was announced

Families and businesses in Scotland will get breathing space from action announced in Budget 2026.
HM Treasury, gov.uk

Against a backdrop of global uncertainty, rising energy costs and pressure on household finances, Chancellor John Healey has taken action on the cost of living, fuel prices, and local jobs — alongside more funding for the Scottish Government to provide public services.
Support with energy bills: The removal of the 4% tariff on kerosene will support the 142,000 Scottish households that rely on heating oil. The UK government will extend 0% VAT on household electricity bills for three months, to 30 June 2027, while a Debt Relief Scheme will write off crisis-era debt for eligible households.
Fuel: the extension of the 5p cut to fuel duty for a further six months until 30 June 2027. The 3.7p cut to red diesel duty continues, which matters for farmers, rural hauliers and other fuel-heavy users across Scotland. He also announced a permanent increase to the generosity of mileage rates to support those who drive for work.

Each line is quoted from the original. Figures are as the publisher stated them on the day.

“Energy costs lowered as home heating oil tariffs removed and 0% VAT on household electricity extended.”
“The Scottish Government will have an additional £600 million for public services.”
“In the Budget, John Healey announced: Support with energy bills: The removal of the 4% tariff on kerosene will support the 142,000 Scottish households that rely on heating oil.”
“The UK government will extend 0% VAT on household electricity bills for three months, to 30 June 2027, while a Debt Relief Scheme will write off crisis-era debt for eligible households.”
“Combined with tariff suspensions earlier this year, this will save households up to £21 annually.”
“Pensions: by the end of this Parliament, 93,000 low-income pensioners in Scotland will pay less tax or none at all on their income, as a result of reducing the disproportionate administrative burden of paying small amounts of tax.”

The latest official figures on the subjects this story covers, each with its source and full history:

Topics, as GOV.UK files them: Scotland.

Original: https://www.gov.uk/government/news/breathing-space-for-scottish-families-and-businesses-at-budget
Published 2026-10-28 14:40:17 UTC
Read by this site 2026-10-28 14:45:11 UTC from GOV.UK
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