Key facts
- Around 20 million households will receive a 100 pound energy bill payment.
- The energy payment scheme has a 2.6 billion pound price tag.
- Annual household energy bills are expected to rise by around 450 pounds in January.
- The UK's fiscal headroom is projected to fall to 15 billion pounds by 2029/30.
- The bank profit surcharge will be hiked by three percentage points to 6% for 15 months.
- UK GDP growth is forecast at 1.2% for this year, revised up from 1.1%.
Britain's top finance minister reduced his fiscal breathing space and slapped fresh taxes on banks on Wednesday as he tried to slash energy costs and show that his boss is homing in on the cost of living. Chancellor John Healey used the first government budget under Prime Minister Andy Burnham to promise a 100 pound energy payment for millions of Brits over the winter. The scheme, costing 2.6 billion pounds, is intended to help with rising energy bills, which are expected to increase by around 450 pounds in January. Healey also opted to hike an existing surcharge on bank profits by three percentage points, taking it to 6% for 15 months starting in January. The UK's fiscal headroom is projected to fall to 15 billion pounds by 2029/30, down from 24 billion pounds in March.