Budget Brings £100 Energy Payment, Cheaper Buses and New Powers for Brighton and Hove

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Households in Brighton and Hove will get help with energy bills, cheaper bus travel and a pay rise for the lowest-paid under measures in this week’s Autumn Budget. The city could also gain new powers to raise money from its visitor economy.

The Chancellor’s package focuses on easing the cost of living, supporting businesses, and investing in housing and local economic growth.

Help With the Cost of Living

The headline measure for residents is a £100 Household Energy Payment for homes in Council Tax Bands A to D, starting in January 2027. The removal of VAT on electricity has been extended to July, and gas standing charges will be scrapped from 2027.

Drivers keep the 5p cut in fuel duty, with the planned inflation-linked rise deferred until July 2027. The £2 bus fare cap outside London has been extended for another year, throughout 2027.

The National Living Wage and National Minimum Wage will rise by 3.9%. That is especially significant for Brighton and Hove, where large numbers of people work in hospitality.

There is also £5m for secondary schools to buy books and reading materials.

Housing and Homelessness

The Budget includes £430m of extra funding to tackle rough sleeping, alongside £1.5bn more for the national Social and Affordable Homes Programme. That is expected to deliver around 10,000 homes in England, prioritising social rent and council homes.

First-time buyers will be able to use a new Your First Home equity loan scheme and a First Time Buyer ISA, backed by £4.7bn.

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Support for Businesses

Retail, hospitality and leisure businesses will share a £1.9bn business rates support package in 2027/28, alongside a new High Streets Strategy. The Trading Allowance, which lets people earn a small income without paying tax on it, will triple from £1,000 to £3,000 to help people start small businesses.

A new £125m Derelict Buildings Fund will help transform community buildings, with a further £65m to rescue valued venues at risk of closure, such as pubs and sports clubs.

Brighton Local

The biggest long-term change could be the extra funding and powers for the new Strategic Authority for Sussex and Brighton. These include retaining business rates and a share of income tax, new growth funding, and the potential for a visitor levy from 2028. For a city that relies heavily on tourism, as the council’s work on the future of its visitor economy shows, that could mean more money for transport, regeneration and culture.

Council leader Bella Sankey welcomed the measures. “Today’s Budget provides some much-needed help for residents in Brighton & Hove who are continuing to feel the pressure of high household costs,” she said.

She highlighted the energy payment, cheaper buses and the minimum wage rise, as well as the housing and rough sleeping measures, “two of the biggest challenges facing our city.”

“Our small businesses and visitor economy are vital to Brighton & Hove,” she added, “so we’ll be looking closely at the opportunities the Budget provides to support our independent shops, restaurants, pubs and leisure businesses.” Many of them, like the local bakery enjoying a boost from Albion’s success, depend on a busy city. The council is already backing local producers through its Sussex food and drink campaign.

“We’ll look carefully at the detail and make sure we are ambitious about securing the greatest possible benefit for our residents, businesses and communities,” she said.

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