Healey's cautious first Budget gives households £100 off energy bills but pushes the tax burden to a new high
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 delivered his first Budget on Wednesday, describing it as a "cost of living Budget" offering "breathing space" to hard-pressed families, but the Office for Budget Responsibility warned the UK's economic position "remains very challenging" with virtually no growth in household income per person since before Covid. Healey doubled the bank surcharge from 3% to 6% for 15 months to fund the energy bill relief, while raising the minimum wage 3.9% for 2.3 million workers. The OBR cut its growth forecast for next year to 1%, and Conservative leader Kemi Badenoch condemned the plans as "not bold enough".
The £100 energy payment risks being wiped out by a predicted £300 price cap rise in January, energy experts warn.
Big decisions on defence spending and welfare are deferred to next year's spending review, leaving major questions unanswered.
