UK Treasury chief faces headwinds as he delivers first budget under new Prime Minister, Andy Burnham
The package adds a £100 energy payment for 20 million households and targets banks and gambling firms to help fund relief measures.
- On Wednesday, Chancellor of the Exchequer John Healey delivered his inaugural Budget, announcing a £100 energy payment for households in council tax bands A to D, extending the fuel duty freeze, and scrapping gas standing charges.
- Healey framed the plan as a cautious stopgap to navigate global economic conditions and inflation driven by the Iran war, emphasizing "fiscal discipline" while deferring major spending changes until 2027.
- To fund these measures, Healey increased the bank corporation tax surcharge from 3% to 6% for 15 months and raised gambling machine duty from 20% to 25% from April next year.
- The Office for Budget Responsibility upgraded its 2026 growth forecast to 1.2%, though lowered 2027 expectations to 1.0%. Healey confirmed fiscal headroom of £15 billion for 2029/30, down from the previous £22 billion buffer.
- This Budget provides immediate relief while the government prepares a 10-year plan and spending review for next year. Officials aim to tackle youth unemployment and welfare reforms later this year, signaling longer-term structural change.
216 Articles
216 Articles
POLITICAL COMMENT: Budget delivers breathing space today and fresh hope for the future for Portsmouth
Families will receive direct help with energy bills, motorists will see fuel duty frozen and thousands more high-street businesses will be taken out of business rates, as the Labour Government backs working people today while investing in Britain’s future.
Budget 2026: £100 energy payment, fuel freeze extension and tariff reduction for beans, chocolate and kerosene
John Healey has announced the Executive will receive funding for a £100 household energy payment for lower income households while a temporary VAT cut on electricity bills is to be extended until July 1, 2027.
Think Tanks Pan Healey’s ‘Do-Nothing’ Budget
The reactions are in from Westminster’s wonks on Healey’s Breathing Space Budget. They’re struggling to breathe… Onward’s director Simon Clarke said: “Britain is drowning in three trillion pounds of debt, while the Chancellor shuffled costs from one pocket to the next… Scrapping standing charges on gas bills only to load the cost onto gas usage…
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