Money Box

The new Prime Minister and Chancellor of the Exchequer have announced several policies aimed at reducing living costs for households and businesses. The announcements include cutting VAT on household energy bills from October, capping bus fares in England from January, and reducing business rates for pubs, clubs, and live music venues by 20% starting from April. These measures come after nearly two million households in England and Wales** were found to be living in water poverty, with many struggling to afford their water bills. The new Chancellor, John Healey, has stated that his first Budget on October 28 will be built on fiscal discipline and will meet the government's existing spending limits while funding these new initiatives. However, this comes as a joint letter from Healey and Prime Minister Andy Burnham instructs cabinet ministers to stick within their existing budgets, even as they implement new policies. This move suggests that the new government is committed to maintaining financial responsibility despite increasing pressure on public finances due to factors like inflation and borrowing costs.