Healey promises £100 energy payments to 20 million households but keeps tax thresholds frozen until 2031 in his first Budget
John Healey's Budget scraps standing charges on gas bills and extends the VAT holiday on electricity to July, though the gas change will not take effect before 2027.John Healey's Budget hands HMRC sweeping new powers to deduct overdue tax directly from bank accounts without taxpayer agreement.
Chancellor John Healey's first Budget raises cumulative Labour tax hikes to over £70 billion since 2024, with income tax thresholds frozen until 2031 in a stealth raid that could cost a worker on £25,000 an extra £5,900 by 2030. The £2.6bn energy payment scheme is funded by new levies on banks and gambling firms, while the OBR has cut its growth forecast to 1% for next year amid the Iran war's economic fallout. Healey called the statement 'a budget built on fiscal discipline.'
Kemi Badenoch warned Britain is 'about to collapse under the weight of welfare' after Healey set aside £5.5bn to uprate benefits for 10 million people.
Fuel duty is frozen for a 15th consecutive year, with drivers paying an average 173.5p per litre for petrol at current highs not seen since 2002.
Sadiq Khan is handed sweeping new tax powers — including a share of income tax and 100% local business rates retention by decade's end — in what Healey called 'the most radical act of decentralisation in a generation.'
