- £1.3bn fund and £50bn reforms will unlock housing, regenerate sites, support growth, and boost infrastructure projects.
- Expansion of breakfast clubs, playgrounds, libraries, and 250 Neighbourhood Health Centres strengthens education and healthcare outcomes.
- Changes to Universal Credit, EV taxation, duties, rail fares, energy bills, and student loans to enhance economic fairness
Announcements included:
- £1.3bn from the National Housing Delivery Fund devolved to major combined authorities to unlock housing, regenerate sites and support local growth
- Planning reforms, including changes to the National Planning Policy Framework (NPPF), alongside skills reform and pensions reform expected to unlock £50bn for business and infrastructure
- New infrastructure projects including £890m for the Lower Thames Crossing.
Education and the NHS
Ms Reeves then turned her attention to education, noting, “this is a government on the side of our kids, who will back their potential.” Pledges include:
- Free breakfast clubs expanded, with 2,000 additional schools joining the scheme in 2026/27
- £18m over two years to renew up to 200 playgrounds across England
- £5m for libraries in secondary schools, building on the £10m committed for primary school libraries earlier this year.
Ms Reeves also announced 250 new Neighbourhood Health Centres delivered through public investment and a new public-private partnership model, as well as £300m in digital technology upgrades to improve NHS productivity and enhance patient outcomes.
Other key points
- Removal of the two-child limit in Universal Credit (UC) Child Element – from April 2026
- Changes to taxation of electric vehicles – including a new Electric Vehicle Excise Duty (eVED) of 3p per mile for electric cars and 1.5p per mile for plug-in hybrid cars, with effect from April 2028
- Tobacco Duty rates – to increase by RPI inflation +two percentage points from 6pm on Budget day
- Alcohol Duty rates – will increase in line with RPI inflation from 1 Feb 2026
- Remote Gaming Duty – will increase from 21% to 40% from April 2026 and a new Remote Betting Rate at 25% within General Betting Duty will be introduced from April 2027
- Student Loans – the Plan 2 repayment threshold will be frozen for three years from April 2027
- Air Passenger Duty (APD) rates – uprated in line with RPI from 1 April 2027
- Devolved government funding – Scottish government to receive £820m, the Welsh government £505m and the Northern Ireland Executive £370m
- Defence spending – the UK to spend 2.6% of GDP on defence in 2027
- Rail fares freeze – applicable to all regulated rail fares in England for one year starting from March 2026 (announced previously)
- Energy prices – a package of measures to reduce average household energy bills by £150 across Great Britain from April 2026
- Prescription costs – NHS prescription in England frozen at £9.90.
Closing comments
Rachel Reeves signed off her Budget saying, “In the face of challenges on our productivity, I will grow our economy through stability, investment and reform. I’ve met my fiscal rules and built our economic resilience for the future. I have asked everyone to contribute… for the security of our country and the brightness of its future, but I have kept that contribution as low as possible by reforming our tax system… making it fairer and stronger for the future.”
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding of the Budget taxation and HMRC rules and can be subject to change in future. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
All details are believed to be correct at the time of writing (26 November 2025)
