Budget 2026 by Postcode: What Changes Where You Live
Published , Budget day. By the PostcodeCheck team.
Budget 2026 was not one change for everybody. Several of its measures depend on where you live: your council tax band decides whether you get a £100 energy payment, the value of your home decides whether you pay a new surcharge from 2028, and your council area decides which business rates, mayor powers and first-home price caps apply. Here is what changes by area, with figures for real councils from official data.
Key points: Budget 2026 by area
- £100 Household Energy Payment for homes in council tax bands A to D in England, paid by councils from January 2027. That is 80.8% of homes in England, but 91.8% in the North East and 69.3% in London (our count from Valuation Office data).
- High Value Council Tax Surcharge on homes in England worth £2 million or more from 1 April 2028: £2,500, £3,500, £5,000 or £7,500 a year on top of council tax. Announced at Budget 2025; this Budget confirmed the deferral scheme, discounts, exemptions and an empty homes premium.
- In Westminster a Band H home pays an average £2,099 council tax in 2026-27. The lowest surcharge band adds £2,500, more than doubling the bill (our calculation).
- London and the South East hold 70.4% of England's 155,210 Band H homes, the closest official guide to where £2m homes are.
- Business rates from April 2027 (England): 100% small business relief for shops, pubs and cafes up to £18,000 rateable value (was £12,000), and bills capped by inflation for two years.
- Mayors get a share of income tax from 2028 and 20% of locally retained business rates from April 2027; the government plans to give every strategic authority the power to charge an Overnight Visitor Levy.
- 0% VAT on household electricity in Great Britain extended to July 2027, worth around £50 off the annual price cap in April 2027.
See your council and its 2026-27 council tax
The free report shows your local authority's council tax, plus crime, flood zone, schools, sold prices and broadband for the postcode. Your exact band is on your bill or the GOV.UK band checker.
Does my council tax band get the £100 energy payment?
Yes, if you live in England and your home is in band A, B, C or D. The Budget launches a £2.6 billion Household Energy Payment: £100 for households in those bands, delivered by local authorities from January 2027 and described in the Budget as "a £100 payment directly into bank accounts" for up to 20 million households (Budget 2026, executive summary, para 3.5 and 6.24; Table 6.1 lists it as a "£100 council tax rebate"). Councils also get £100 million to help households hit hard by energy bills, some of whom are in bands above D. Your council will say how its payment reaches you.
Because bands in England are still based on what a home was worth on 1 April 1991 (Band D was £68,001 to £88,000), the share of homes that qualify varies a lot by area. We counted it from the Valuation Office's stock of properties at 31 March 2026:
| Region (England) | Homes in bands A to D | Band H homes |
|---|---|---|
| North East | 91.8% | 1,580 |
| Yorkshire and The Humber | 89.0% | 3,780 |
| North West | 88.6% | 7,380 |
| East Midlands | 87.8% | 3,510 |
| West Midlands | 86.0% | 6,190 |
| South West | 80.4% | 8,480 |
| East of England | 78.4% | 14,960 |
| South East | 71.3% | 40,610 |
| London | 69.3% | 68,730 |
| England | 80.8% (20,960,770 of 25,944,800) | 155,210 |
Source: VOA, Council Tax: stock of properties, 2026 (table CTSOP1.0). Shares are our calculation.
By council, the highest shares are in Kingston upon Hull (98.5% of homes in bands A to D), Stoke-on-Trent (97.7%), Sandwell and Barking and Dagenham (both 97.3%) and Nottingham (96.9%). The lowest are Kensington and Chelsea (31.7%), Westminster (35.2%), the Isles of Scilly (35.9%), Elmbridge (41.1%) and Richmond upon Thames (43.1%).
How much is £100 worth against your bill?
The same £100 goes further where council tax is low. Our calculation uses each council's 2026-27 average Band D (MHCLG, including parish precepts) and the legal ratio for Band A (six ninths of Band D):
| Council | Band A bill 2026-27 | £100 as share of it |
|---|---|---|
| Wandsworth | £685 | 14.6% |
| Westminster | £700 | 14.3% |
| England average | £1,594 | 6.3% |
| Manchester | £1,541 | 6.5% |
| Birmingham | £1,575 | 6.3% |
| Liverpool | £1,782 | 5.6% |
| Dorset | £1,843 | 5.4% |
Source: MHCLG, Council Tax levels set by local authorities in England 2026 to 2027 (Table 10). England average Band D is £2,392 (£2,391.52 before rounding). Your own bill depends on your parish and any discounts.
Where will the "mansion tax" on £2m homes bite?
The High Value Council Tax Surcharge, often called a mansion tax, is a new yearly charge on owners of homes in England worth £2 million or more. It was first announced at Budget 2025; Budget 2026 confirmed how it will work. It starts on 1 April 2028, is legislated in Finance Bill 2026-27, and is collected by your council alongside council tax (Budget 2026, para 6.234; HVCTS tax information note). The Valuation Office will run a targeted valuation and put each home in one of four bands:
| Home value | Surcharge a year |
|---|---|
| £2.0m to £2.5m | £2,500 |
| £2.5m to £3.5m | £3,500 |
| £3.5m to £5.0m | £5,000 |
| £5m and over | £7,500 |
The government expects about 150,000 people who own homes worth £2 million or more to pay it, the most valuable 1% of homes in England. Its own example: a Band D home in Darlington or Blackpool worth around £400,000 pays £2,400 to £2,600 a year, while a £10 million Band H home in Mayfair pays around £2,100. The official 2026-27 figures bear that out: average Band D is £2,494 in Darlington and £2,513 in Blackpool, and average Band H in Westminster is £2,099.
No official map of £2 million homes has been published yet. The nearest official guide is Band H, homes worth more than £320,000 in 1991. England has 155,210 of them, and 70.4% are in London (68,730) and the South East (40,610). Westminster (17,280) and Kensington and Chelsea (15,520) alone hold 21.1%. Other councils with the most Band H homes are Buckinghamshire (6,190), Camden (4,940), Elmbridge (4,570), Barnet (4,350) and Richmond upon Thames (3,660). Not every Band H home is worth £2 million today, so treat this as a guide to where the surcharge will cluster, not a list of who pays.
What it adds to a Band H bill, council by council
| Council | Band H bill 2026-27 | With £2,500 surcharge | With £7,500 surcharge |
|---|---|---|---|
| Westminster | £2,099 | £4,599 | £9,599 |
| Wandsworth | £2,056 | £4,556 | £9,556 |
| Kensington and Chelsea | £3,333 | £5,833 | £10,833 |
| Camden | £4,415 | £6,915 | £11,915 |
| Richmond upon Thames | £4,972 | £7,472 | £12,472 |
| Elmbridge (Surrey) | £5,116 | £7,616 | £12,616 |
| Dorset | £5,530 | £8,030 | £13,030 |
Our calculation: MHCLG 2026-27 average Band D times two (the legal Band H ratio), plus the surcharge. The surcharge starts in April 2028, when council tax will have changed; the consultation said the charges will rise with CPI each year.
The result is that the surcharge bites hardest, as a share of the bill, in the London boroughs with the lowest council tax: in Westminster and Wandsworth the lowest band more than doubles a Band H bill, while in Dorset it adds 45%.
Confirmed today in the government response to the consultation: a deferral scheme, so eligible owners can delay payment until ownership changes (the government intends the tests to be household income of £35,000 or less, savings of £16,000 or less, or someone in the household meeting disability criteria, with the detail and any interest set in regulations); homes left empty and substantially unfurnished for 12 months or more pay a 100% premium; student halls, care homes and armed forces barracks are exempt, and developers' unsold new builds, social housing and farmhouses on working farms get discounts. Owners who disagree with their band can challenge it and then appeal to the Valuation Tribunal.
Proposed in the consultation (May 2026), with detail to follow in regulations: homes are judged on their value in 2026, the Valuation Office publishes a draft list of homes in scope in autumn 2027, owners get an initial 8 months to challenge a band, revaluations happen every five years (the consultation named 2033 for the next), and the charges rise with CPI each year.
What changes for high streets and business rates near you?
The Budget's biggest local change for town centres is business rates for retail, hospitality and leisure (RHL) properties in England, from April 2027 (Budget 2026, para 3.22 to 3.25 and 6.189 to 6.192):
- Small Business Rates Relief for qualifying RHL properties: 100% relief up to a rateable value of £18,000 (from £12,000), tapering to £21,000 (from £15,000). About 70,000 more high street businesses pay no business rates, including 3,500 pubs, 3,900 restaurants, 2,200 cafes and 1,700 hair and beauty salons.
- Bill increases for qualifying RHL properties are capped by CPI inflation in 2027-28 and 2028-29.
- Pubs, social clubs and live music venues get 35% relief from 1 April 2027 (was 15%); the very largest live music venues (rateable value £1 million or more) do not get the increase.
- The 2026 Supporting Small Business scheme is extended for one year from 1 April 2027 to ratepayers who had the 2023 scheme, around 37,000 of them.
- Vape shops and adult gaming centres lose the RHL multipliers from April 2027, and vape shops lose Small Business Rates Relief.
The government says half of all RHL properties in England will pay no business rates and around 110,000 will see bills fall next year. A new high streets strategy, Hope on the High Street, comes with a £210 million package to revive derelict high street buildings.
Which areas get new mayor powers, visitor levies and rates zones?
The Fiscal Devolution Roadmap published with the Budget changes how local government in England is funded (Budget 2026, para 4.60 to 4.68):
- Income tax assignment for all mayors from 2028: a share of income tax raised in the area goes to the mayor. The Budget kept the rates of tax on earnings unchanged.
- Business rates: mayors keep a 20% share of locally retained business rates from April 2027, with local and regional government keeping 100% of business rates income by the end of the decade.
- Overnight Visitor Levy: the government plans to legislate so that every strategic authority can introduce one.
- Business Rates Retention Zones (first wave, subject to business cases and legislation): Greater Manchester, East Midlands, Hull and East Yorkshire, Liverpool City Region, Tees Valley, West of England, North East, York and North Yorkshire, and the Greater London Authority.
- Ten new devolution agreements in their final stages: mayoral strategic authorities for Devon, Plymouth and Torbay; Hertfordshire; Lancashire; Leicester, Leicestershire and Rutland; Stoke and Staffordshire; Surrey; Thames Valley (Oxfordshire, Berkshire and Swindon); and Wessex; a strategic authority for Kent and Medway (mayoral if local government reorganisation allows); and a foundation strategic authority for Cornwall. The government says over 90% of England's population will then have a devolution agreement.
- Good Growth Funds: £285 million in 2027-28, £165 million for places with a mayor in 2027 and £120 million for areas moving towards devolution.
Your First Home: why the price cap depends on your council
The new £4.7 billion Your First Home scheme offers 20% equity loans to first-time buyers in England, with a deposit from 2.5%, five years interest free, and household income caps of £110,000 outside London and £140,000 in London. Its price caps will be set from local authority median prices, so the most you can pay depends on the council area you buy in. The Budget gives only the London caps: £650,000 in inner London and £500,000 in outer London. The Treasury's costing says the loans are for new-build homes. Pre-registration opens by the end of December 2026, full applications from February 2027 and the first loans from April 2027 (Budget 2026, para 5.5 and 5.6).
Until the caps for each council are published, the sold prices for your postcode and our first-time buyer area guide show what homes really sell for locally. Stamp duty rates did not change in this Budget; the stamp duty calculator uses the current rates.
Energy bills: England, Scotland, Wales and Northern Ireland
| Measure | Where | When |
|---|---|---|
| 0% VAT on household electricity (was 5%), around £50 off the annual price cap in April 2027 | Great Britain | Extended to July 2027 |
| Funding for comparable help with electricity bills; extended VAT relief expected | Northern Ireland | From April 2027 |
| £100 Household Energy Payment for bands A to D | England | From January 2027 |
| Share of the funding to provide similar support | Scotland, Wales, Northern Ireland | Set by each government |
| Ofgem asked to abolish gas standing charges on household bills | Great Britain | Aim: end of 2027 or soon after |
Sources: Budget 2026, para 3.4, 3.5, 6.24 and 6.25; temporary zero rate of VAT for domestic electricity.
What the Budget did not change where you live
- No council tax revaluation and no change to council tax bands. Homes in England stay on 1991 values (VOA band guidance).
- No change to Stamp Duty Land Tax rates or thresholds (England and Northern Ireland).
One local fee to know about if you rent or let in England: the Budget's policy costings confirm a £65 a year fee per property for the "Register your rental property" service for private landlords from 15 December 2026, covering about 4.9 million homes. Renters can see how to check a landlord in our PRS Database guide.
Frequently asked questions
Will I get the £100 Household Energy Payment?
If you live in England and your home is in council tax band A, B, C or D, the Budget says you will get a £100 Household Energy Payment (listed in the Budget as a "£100 council tax rebate"), delivered by your council from January 2027. That covers up to 20 million households, about 80% of homes in England. Homes in bands E to H do not get the flat £100, but councils get £100 million to help households hit hard by energy bills, including some above band D. Scotland, Wales and Northern Ireland get their share of the money through the Barnett formula, which they can use to provide similar support.
Do I need to apply for the £100, and how is it paid?
The Budget says the payment goes through the council tax system, delivered by local authorities from January 2027, and its summary describes it as "a £100 payment directly into bank accounts". It does not say whether households need to apply or give the date each council will pay, so watch your council's website and your council tax account for details. The Budget costs it all in 2026-27 (Table 6.1), so it is a single payment of £100, and it does not change your council tax band.
Is my home caught by the mansion tax (High Value Council Tax Surcharge)?
Only if it is a home in England worth £2 million or more. The Valuation Office will run a targeted valuation of likely homes (the consultation proposed judging value at 2026 levels) and place each one in one of four bands: £2,500 a year for £2m to £2.5m, £3,500 for £2.5m to £3.5m, £5,000 for £3.5m to £5m and £7,500 for £5m and over. It starts on 1 April 2028, is charged to the owner rather than the tenant, and is collected by your council on top of normal council tax. It was first announced at Budget 2025; Budget 2026 confirmed the deferral scheme, discounts, exemptions and the empty homes premium.
Did the Budget change council tax bands or order a revaluation?
No. Budget 2026 did not change council tax bands or announce a council tax revaluation. Homes in England are still banded on 1 April 1991 values. The surcharge on £2m homes sits on top of the existing bands from April 2028, and the Budget mentions a 2029 revaluation only for business rates.
When do the business rates changes for shops, pubs and cafes start?
From April 2027 in England. Small Business Rates Relief for qualifying retail, hospitality and leisure properties will cover rateable values up to £18,000 in full (from £12,000) and taper to £21,000 (from £15,000). Bills for qualifying retail, hospitality and leisure properties are capped by CPI inflation in 2027-28 and 2028-29, and pubs, social clubs and most live music venues get 35% relief from 1 April 2027 instead of 15%.
Does living in a mayoral area mean I pay more tax?
Not from this Budget. Income tax assignment for mayors from 2028 is about how mayors are funded from tax already raised in their area, and the Budget kept the rates of tax on earnings unchanged. The new power for strategic authorities to bring in an Overnight Visitor Levy would apply to overnight stays, and only where an authority chooses to use it once the law is passed.
Check what your postcode means for you
Free report for any postcode: council tax for your council, crime, flood zone, schools, sold prices and broadband. Premium (£4.99) adds ground stability, radon, coal mining and ownership checks for a property in England or Wales.
Sources, all read on 28 October 2026: Budget 2026 · High Value Council Tax Surcharge tax information note · HVCTS consultation and government response · MHCLG council tax levels 2026-27 · VOA stock of properties 2026 · Fiscal Devolution Roadmap · Hope on the High Street.
Related: Cost of living calculator · UK cost of living by area · House prices by postcode · Browse areas · Is my landlord registered?