Fuel duty and energy bills among taxes that could rise in Budget, top MP warns, after borrowing overshoots by £3.5bn
From the Newshound archive · first published 22 September 2026 · last updated 23 September 2026.
Energy bills from major suppliers, including British Gas and EDF Energy, which the IFS says could fall for households that shift usage away from peak hours under time-varying tariffs.KPMG warns Chancellor John Healey's fiscal headroom has been slashed to roughly £12bn — nearly half the £23.6bn available at the spring forecast.
A senior MP has signalled that fuel duty and energy bills could be targeted in the upcoming Budget, as Chancellor John Healey faces mounting pressure following government borrowing hitting £18.3bn in August — a record second-highest for the month and £3.5bn above OBR forecasts. Shadow Chancellor Andrew Griffith accused Labour of "fiscal incontinence" for running the highest tax take in history while borrowing still surges. Treasury Select Committee chair Meg Hillier warned the wars in Ukraine and Iran are hammering the public finances, leaving the Chancellor facing "difficult decisions" with little room to manoeuvre.
Economists warn Healey's £23.6bn fiscal buffer has shrunk to as little as £5bn due to rising debt costs and pay pressures.
Capital gains tax, bank levies and a cut to the mansion tax threshold to £1.5m are all said to be "live" options inside the Treasury.
Baker Tilly International chief executive Francesca Lagerberg warned the Budget will carry a heavy 'pain cost' — adding bluntly: 'It's going to be a ride.'
