UK Budget offers 'breathing space' but lacks long-term vision, critics say

Key facts

• Budget includes £100 Household Energy Payment for up to 20 million households in 2027.
• VAT cut on electricity bills extended until July 1, 2027.
• National Living Wage to increase to £13.21 per hour on April 1, 2027.
• Bank Corporation Tax Surcharge to increase to 6% for 15 months.
• OBR forecasts continued fall in living standards and anaemic economic growth.

UK Chancellor John Healey presented a Budget designed to offer 'breathing space' to families and businesses facing rising costs, while also aiming for long-term economic stability and growth. The plan includes measures such as a £100 Household Energy Payment for millions of households, an extension of the VAT cut on electricity bills, and an increase in the National Living Wage. These initiatives are intended to be funded partly by a temporary rise in the Bank Corporation Tax Surcharge. However, the Budget has drawn criticism for a perceived lack of radical economic reform and a long-term vision, with forecasts suggesting living standards will continue to decline.