Budget 2026: what to expect for Yorkshire from John Healey

He said that today’s fiscal statement will offer “breathing space for today and fresh hope for the future”.

Mr Healey has already announced several “everyday fixes”, including ending the carer’s allowance cliff edge, making a higher tax-free mileage allowance of 55p permanent and slashing tariffs on a range of popular foods including chocolate and gherkins.

He is also expected to continue the fuel duty freeze and cut 1p off the duty on a pint.

“This Budget is designed to give households breathing space from some of the everyday costs, provide targeted support for businesses and self-employed people, and to start the long-term action needed to get energy costs down for good,” he said.

“But breathing space today must go hand-in-hand with building for the future.

“So, we'll back British businesses and entrepreneurs, we'll invest in the technologies that drive future growth, and we'll build more homes, shift power out of Whitehall, so that leaders locally can drive growth in every postcode.”

Devolution is expected to play a major role in today’s Budget.

Mr Healey will confirm plans to allow mayors to spend a proportion of income tax and business rates raised in their areas.

This will replace the so-called “begging bowl culture”, which sees regional leaders have to apply for grants for specific projects from Whitehall.

It will allow for greater spending flexibility and also allow mayors to borrow against future earnings to fund infrastructure like the West Yorkshire mass transit.

On top of this, an initial £285m will be given to mayors across the country to invest in projects in their areas.

Mr Healey pledged that “in an uncertain world, we will strengthen national security and our defences, as well as our support for Ukraine”.

All eyes will be on his spending plans for the armed forces after he resigned as defence secretary over the summer, saying Sir Keir Starmer was not putting enough money into protecting our country.

Mr Healey will not raise income tax, employee’s national insurance or VAT, as per the Labour manifesto.

Reports suggest he was talked down from potentially raising capital gains tax, which is levied on investments and purchases.

However, he is expected to increase a tax on banking profits to pay for his cost of living measures.

It is confirmed a £7m fund will be used for a feasibility study into a possible future bid to hold the Olympics and Paralympics in the North.