Story perspectives

Tax rates on savings, property income set to rise in 2027

By Drooid · Oct 28, 2026 · How we work

Read the story

Story summary

Summary

Chancellor John Healey announced tax rates on savings and property income rise to 24%, 44% and 49% from 6 April 2027.
A temporary bank surcharge will rise to 6% of profits for 15 months starting January 2027.
Business rates relief threshold for England retail, hospitality and leisure premises rises to £18,000 from £12,000 on 1 April 2027.
National Living Wage rises 3.9% to £13.21 per hour for workers aged 21 and over from 1 April 2027.

Summary

Resolution Foundation says fiscal headroom fell to roughly £12 bn after debt-interest costs surged.
Office for Budget Responsibility will weigh inflation, pay growth and productivity when judging public-finance outlook.
Government spending this year exceeds forecasts by about £1 bn each month, widening the deficit.
Analysts argue at least £14 bn of headroom is needed to keep bond markets calm.

History

After the 2010 coalition budget, Chancellor George Osborne launched a £110 billion austerity programme aimed at cutting the deficit and debt, a policy that reshaped public spending for a decade. The 2027 plan announced by Chancellor John Healey—raising the savings tax to 49% and adding a 6% bank levy—revives those fiscal pressures amid a £12 billion headroom squeeze.

1 of 3

After the 2010 coalition budget, Chancellor George Osborne launched a £110 billion austerity programme aimed at cutting the deficit and debt, a policy that reshaped public spending for a decade. The 2027 plan announced by Chancellor John Healey—raising the savings tax to 49% and adding a 6% bank levy—revives those fiscal pressures amid a £12 billion headroom squeeze.

1 / 3