Key facts
- Energy bills support includes a £100 payment for households in council tax bands A-D.
- VAT reduction on energy bills extended until July.
- Gas standing charges abolished, benefiting 60% of homes.
- Bank profit surcharge temporarily increased to 6%.
- Gambling companies face a five percentage point tax increase on high-stakes machines.
- Living standards are forecast to continue falling, according to the OBR.
UK Chancellor John Healey's first budget has been described as offering 'breathing space' rather than a radical economic overhaul. The plan includes measures to ease household energy costs, such as a £100 payment for many homes and an extended VAT reduction, alongside the abolition of gas standing charges. Taxes on banks and gambling companies were increased, though critics argue these measures are insufficient or temporary.
While the budget aims to provide immediate relief, concerns have been raised about its lack of a long-term vision for economic growth and public services. The Office for Budget Responsibility forecasts continued falls in living standards and anaemic economic growth. Some measures, like tax rises for landlords, are predicted to be passed on to renters, potentially undermining the intended 'breathing space'.