Chancellor John Healey raises taxes and delays the defence boost in his first Budget as the economy heads for a slump
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 permanently eliminated green charges from energy bills and held fuel duty unchanged for the fifteenth consecutive year, while deferring any substantial rise in defence spending — a decision that drew immediate criticism against a backdrop of Middle East instability and predictions of an economic slowdown. The centrepiece of the Budget is a £100 cash payment direct to 20 million households, with standing charges stripped from energy bills to ease pressure on families at a point when analysts expect energy prices to jump roughly 27 per cent this winter.
Nearly one million low-income pensioners will be protected from income tax after the state pension climbs to £13,036 in April 2027, clearing the frozen £12,570 personal allowance.
Around three million workers who use their vehicles for work — including nurses and carers — will benefit from the largest rise in mileage rates since 2010, with high-mileage drivers saving up to £300 a year.
