Chancellor John Healey is delivering his first Budget speech to a packed House of Commons.
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Healey → deliver → Commons
At the beginning of his address, Mr Healey warned Britain is facing “global economic storms” as the war in Iran drives up oil prices.
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war → warn → prices
The Chancellor set out a number of measures to create “breathing space” for people struggling with the cost of living, including moves to cut energy bills.
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Chancellor → set → bills
Ahead of the speech, the Treasury announced standing charges on gas bills, which cover the cost of delivery to homes and businesses, will be scrapped from 2027 “or as soon as possible after”.
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which → announce → 2027
The speech got under way in the Commons just after 12.30pm, following Prime Minister’s Questions.
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speech → get → Questions
Healey announces new "strict tests" data centres must meet
“To ensure our most sensitive data stays under British control, I am setting out a new deal for data centres in the UK,” Healey said.
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Healey → announce → UK
“When the NHS uses AI to treat patients, we want that data here.
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we → use → data
When our Armed Forces use AI to keep us safe, we want that data here.
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we → use → data
“I am today launching a new British Data Centre Covenant with strict tests that data centres must meet: To invest in local communities, create local jobs and protect local water supplies.
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centres → launch → supplies
In return, critical data centres will get the grid connections they need, and, where necessary, be allowed to build onsite generation while they wait.
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they → get → generation
“Built on sovereignty and security, I want to ensure that the British people can benefit from the huge potential upsides of AI with a new AI Challenge Prize to find innovative uses for AI in public services and the Union Learning Fund to back workers.
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people → build → workers
“This is how Britain leads on AI: secure, safe and working for the British people.”
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Britain → lead → people
Bank tax to increase 3% for 15 months
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tax → increase → months
The Chancellor said the bank tax would increase 3% for 15 months.
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tax → say → months
He told the Commons: “Our world-leading banks make a huge contribution to this country, in the tax they pay, in the jobs, industry and investment they support.
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they → tell → jobs
“As Chancellor, I want to say directly to our banks, I celebrate and am grateful for the role you play.
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you → want → role
And amid global economic storms, I am looking to our banks to help fund breathing space for British families.
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I → look → families
“And so banks will pay an extra 3% on the Bank Surcharge, this will be time limited, to pay for immediate support on energy bills.
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this → pay → bills
“I’ve made my choice at this Budget: asking a bit more of our banks to support ordinary people, raising taxes on gambling to support good growth on every high street.”
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I → make → street
HMRC given boost to collect more tax
John Healey said HM Revenue and Customs will get more money to help collect more tax.
The Chancellor said he would reform how self-assessed income tax is collected, so those affected would make “smaller, more regular payments, instead of facing large bills that are often harder to pay”.
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that → give → bills
Mr Healey said people who are “taking profits out of companies are taxed consistently” but added he would protect “genuine transactions and families passing their businesses down to the next generation”.
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he → say → generation
Investment by foreign sovereigns would be modernised, to bring UK rules “more in line with other investment and other nations”.
He also told MPs larger taxi companies would have VAT rules changed.
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rules → modernise → MPs
He said it would “ensure they play by the same rules, no matter where they are located, while still protecting smaller local firms”.
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they → say → firms
Chancellor announces an additional £20.4million for the National Wealth Fund
The Chancellor has announced an additional £20.4 billion for the National Wealth Fund and the British Business Bank over the coming years, with the investment expected to support 140,000 jobs.
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investment → announce → jobs
The government will also work with pension providers, asset managers and the wider industry to encourage more private investment in Britain’s innovative, fast-growing businesses.
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government → work → businesses
The Budget also aims to reduce regulatory and administrative burdens on businesses, removing regulations and tariffs worth £800 million.
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Budget → aim → regulations
A regulatory exemption will allow innovative products, including drones and medicines, to be safely tested and scaled up more quickly.
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products → allow → drones
Annual tax-free allowance for Cash ISAs will be retained at £20,000
The Chancellor has outlined changes to business investment incentives, capital gains tax and savings tax as part of the government’s commitment to fiscal discipline.
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Chancellor → retain → discipline
Here’s a breakdown of what he has said:
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he → ’ → what
Corporation tax:
Full expensing in Corporation Tax will remain in place for eligible assets.
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expensing → remain → assets
For other assets, the main rate of first-year allowance will increase from 40% to 50%, providing upfront tax relief for new investment, while the main writing down allowance will fall from 14% to 12%.
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allowance → increase → %
Capital Gains Tax:
The threshold for Business Asset Disposal Relief in Capital Gains Tax will be reduced from £1 million to £500,000, with no change for three in four claimants.
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threshold → reduce → claimants
Income tax on savings and property:
From April 2027, tax rates on income from property and savings will rise by two percentage points.
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rates → rise → points
Employment income:
Tax on dividend income and employment income will remain unchanged.
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Tax → remain → income
The Chancellor also stated that 88% of people will pay no more tax on their savings.
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% → state → savings
The government will retain the annual £20,000 tax-free allowance for Cash ISAs, abandoning the planned reduction.
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government → retain → reduction
It will also work with the sector to develop a new Starter ISA designed to encourage first-time investors to save and invest.
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It → work → investors
Business rates for pubs, clubs and music venues to be cut by 20%
The government has announced a package of measures to support high street businesses, including pubs, clubs, music venues, shops, restaurants and gyms.
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government → cut → pubs
From April next year, business rates for pubs, clubs and music venues will be cut by 20%.
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rates → cut → %
The threshold for Small Business Rate Relief for retail, hospitality and leisure businesses will also rise from £12,000 to £18,000, taking an additional 70,000 businesses out of paying business rates altogether.
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threshold → rise → rates
…and 27 more, not listed.
The Aporia
