Chancellor John Healey is delivering his first Budget against a challenging economic backdrop.
asserted
Healey → deliver → backdrop
With borrowing costs at a 30-year high and fuel and energy bills rising, Healey has pledged to provide 'breathing space' for households and businesses.
asserted
Healey → rise → households
It has been trailed as a 'do no harm' package of limited tax hikes helping to pay for cost-of-living support, while delaying big spending decisions on defence, benefits and social care.
asserted
It → trail → defence
We will also hear from the Office for Budget Responsibility, which will publish its forecasts and lay bare the economic realities facing the Chancellor.
asserted
which → hear → Chancellor
Here's what Healey has announced so far:
asserted
Healey → announce → what
John Healey has already announced help on energy bills for low-income families
Budget built on 'fiscal discipline'
The Chancellor opened his Budget by saying it is for the 'working people of Britain, for British businesses, big and small'.
asserted
it → announce → businesses
He said: 'First, by giving Britain some breathing space on the cost of living and the cost of business,
'Second, backing the enterprise of British business to unleash innovation and growth in every postcode
'And third, by tackling the big challenges on energy, on national security, on public service transformation and on housing.'
asserted
He → say → housing
The OBR forecasts the Government will spend £14billion more on debt interest this year as Britain battles 'global economic storms'.
asserted
Britain → forecast → storms
Borrowing is set to fall to 4.2 per cent this year, reducing to 1.8 per cent in 2030-31, while UK debt as a percentage of GDP is up to 83.2 per cent this year and 83.8 per cent next year, before dipping to 81.7 per cent in 2031-32, the Chancellor said.
asserted
Chancellor → set → 2031
GDP is expected to grow 1.2 per cent this year before falling back to 1 per cent next year, and rising to 1.6 per cent in 2028.
asserted
GDP → expect → 2028
Healey has already announced he will axe standing charges on gas bills, in a move that will benefit millions of households - but experts warn those in larger homes could be worse off.
uncertain
those → announce → homes
The Treasury said Healey will today ask the energy regulator Ofgem to remove standing charges 'in 2027 or as soon as possible after'.
asserted
Healey → say → 2027
He said he will set out similar reforms for electricity bills.
asserted
he → say → bills
'From this point, our priority is first and foremost cheaper energy, with clean power key to achieving this,' he said in his statement.
asserted
he → achieve → statement
He will extend the VAT cut on domestic energy bills through the winter and pledged to take 25 per cent off business energy bills from April.
asserted
He → extend → April
And finally, households in council tax bands A to D will receive a £100 energy payment paid directly into their accounts.
asserted
households → receive → accounts
Low-income pensioners avoid income tax
The Chancellor has confirmed pensioners whose sole income is the state pension will not pay income tax.
Those relying on just the state pension had been set to pay income tax on it for the first time from next April, as the annual amount would breach the income tax threshold of £12,570.
Fuel duty
asserted
amount → avoid → duty
The 5p fuel duty cut will be extended to July 2027, the Chancellor confirmed.
asserted
Chancellor → extend → July
Duty paid on motor fuels has been frozen since 2011, except for the temporary cut which was introduced in 2022 when oil prices spiked after Russia's full-scale invasion of Ukraine.
asserted
prices → pay → Ukraine
Business rates relief
John Healey said he will make it so that 70,000 more small businesses do not have to pay any business rates.
asserted
businesses → say → rates
He will increase the threshold for small business rates relief for retail, hospitality, leisure businesses from £12,000 to £18,000.
asserted
He → increase → 18,000
He said this would be welcome news for firms such as bakeries and hair salons, which 'make the places we live and work, the places we love.
asserted
we → say → places
For larger retail and hospitality firms, he announced a freeze on rates in real terms, 'so that none face an above-inflation rise for two years.'
Vape shops and adult gaming centres will be exempt.
Gambling tax hikes
Healey said he would fund tax breaks for the High Street by hiking gambling taxes, including increasing machine games duty from 20 per cent to 25 per cent for higher stakes machines.
asserted
he → announce → machines
But he said he would protect pubs and seaside arcades from these increases.
asserted
he → say → increases
The national minimum wage and national living wage will increase by 3.9 per cent for 2.3 million workers, Healey confirmed.
asserted
Healey → increase → workers
Cash Isa cut reversed
Healey has abandoned his predecessor Rachel Reeves' plans to cut the cash Isa allowance from £20,000 to £12,000, and confirmed he will work with the sector to create a new 'starter Isa' to reward first-time investors.
asserted
he → reverse → investors
Tax on banks
John Healey has confirmed a temporary rise in the bank surcharge, currently levied at 3 per cent on top of the 25 per cent corporation tax rate, by an extra 3 percentage points to 6 per cent to help fund energy support.
asserted
Healey → confirm → support
If you take out a product This is Money may earn a commission.
uncertain
This → take → commission
These deals are chosen by our editorial team, as we think they are worth highlighting.
asserted
they → choose → team
This does not affect our editorial independence.
asserted
This → affect → independence
Terms and conditions apply on all offers.
asserted
Terms → apply → offers
The Aporia
