Chancellor John Healey delivered his first budget address in the House of Commons, introducing a series of measures intended to alleviate living costs for families during a period of global economic volatility. Speaking before Prime Minister Andy Burnham and his government colleagues, Healey pledged to provide households with “breathing space now” and “hope for the future” while navigating significant international economic challenges. With Prime Minister Andy Burnham and other frontbench colleagues cheering him on, the chancellor unveiled a string of measures aimed at cutting the cost of living, in an hour-long speech to a packed House of Commons.
A centerpiece of the budget is a one-off £100 energy payment directed at households in council tax bands A to D across England. The Welsh government has confirmed it will match this provision, and Scotland is expected to follow suit with a plan to replicate the support. Additionally, the government intends to abolish gas standing charges throughout England, Scotland, and Wales by 2027 or shortly thereafter; these daily fixed costs will be transitioned to per-unit pricing, which will result in higher costs for heavy gas consumers. Healey announces £100 energy bill help for millions and raises taxes on banks and some savers. Meaning heavy gas users will face higher bills, these fixed daily fees will be shifted onto the price of each unit of energy.
The initiative is largely funded by a doubling of the tax on big bank profits, rising from 3% to 6%.
This measure is scheduled to take effect in January and remain in place until April 2028. The Chancellor also announced increased levies on high-stakes gambling machines and extended the temporary 5p fuel duty reduction on diesel and petrol until July. Furthermore, minimum wage rates are set to rise by 3.9% in April, although the government confirmed there will be no immediate adjustments to the current wage disparity between younger and older workers.
Conservative leader Kemi Badenoch criticized the announcement, labeling the government as “overspent, overborrowed, overtaxed and drowning in an out-of-control welfare system.” She argued that the Chancellor’s proposals failed to demonstrate sufficient ambition. While Healey included tax incentives to assist businesses on the high street, he noted that major policy decisions regarding welfare and defence spending are postponed until next year.
