UK Budget 2026: No More Relief for the ‘Squeezed Middle’

Chancellor John Healey’s 2026 Budget leaves the UK’s middle‑income households with little room to cut costs as interest rates rise. Dawn Fazackerley‑King, a 42‑year‑old Pilates instructor from Ipswich, warns that her 1.4% mortgage could jump to about 5.3%, adding roughly £250 a month to her living expenses. With a household income of around £70,000, the couple has already trimmed discretionary spending and now faces a potential £250‑a‑month increase from a single loan. The Office for National Statistics shows that 55% of adults reported higher living costs in August, down from 62% in August 2025 and 79% in April, yet the trend remains chronic. Prime Minister Andy Burnham has introduced measures such as a £2 cap on most single bus fares, a VAT cut on domestic electricity, and the removal of standing charges on gas bills, but critics argue these are temporary fixes rather than lasting solutions.