Key facts
- Chancellor John Healey will announce the budget at 12:30pm.
- The budget is expected to focus on 'everyday fixes' to ease cost of living pressures.
- Average household arrears debt increased from £2,833 to £4,345 between 2022 and 2025.
- One in two people seeking debt advice now have energy debt.
- The Warm Homes Discount, a £150 annual reduction to electricity bills, may be made more generous.
- The government will remove import tariffs on certain food products, saving an estimated £21 annually.
UK Chancellor John Healey is set to unveil the Burnham government's first budget today, which is expected to be a 'low-key' affair focused on easing financial pressures for households. The Treasury has indicated that radical tax changes are unlikely, with a focus on 'everyday fixes' and adherence to Labour's fiscal rules. Measures are anticipated to include support for energy bills, particularly for poorer families, and reforms aimed at reducing costs in the longer term. The government also plans to abolish a rule that has contributed to debt for unpaid carers and is expected to announce further funding for council housebuilding and details on the 'Your First Home' scheme.