UK Chancellor John Healey announced a £100 payment for 20 million households and an extended VAT cut on electricity bills in his first budget. The measures, aimed at navigating "global economic storms," will be funded by a windfall tax on banks and a 2 percentage-point tax increase for landlords and savers. Healey also signaled reforms to energy bill charges and pledged to maintain Labour's deficit-reduction plans.
The budget introduces measures to ease household energy costs and aims to maintain fiscal discipline amid global economic challenges, impacting consumers, banks, landlords, and savers.
UK Chancellor John Healey unveiled his first budget, promising fiscal discipline amidst "global economic storms" exacerbated by the Middle East conflict. He announced a £100 payment for 20 million households, an extension of the VAT cut on electricity bills, and the abolition of the gas standing charge. These measures, along with a shift of energy levies to general taxation, aim to ease consumer burdens. The budget is funded by a doubled windfall tax on banks and a 2 percentage-point tax increase for landlords and savers. Despite a downgraded growth forecast of 1% and increased interest costs due to inflation, Healey committed to Labour's deficit-reduction targets.
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