Chancellor John Healey has delivered his first Budget this afternoon (Wednesday 28 October) since taking over at the Treasury.
Standing at the dispatch box, he stated that this was a Budget for the “working people of Britain, for British businesses big and small” that is built on economic discipline.
He quipped that he hoped to be the most closely watched member of the government had the Prime Minister not appeared on Gogglebox.
Before beginning, Healey also paid tribute to his predecessor, Rachel Reeves who he said “brought fiscal discipline to this country”.
What did John Healey say about Jackdaw?
The Chancellor says the gas field will “boost energy security” and add £2.9bn to the UK economy.
What did John Healey say about energy in the Budget?
Chancellor John Healey says the VAT cut on electricity bills will be extended through the winter and spring until July. He says the move will reduce the annual energy price cap by £50.
Healey also points to the previously announced removal of the gas standing charge, which is due to take effect next year. He adds that the government will introduce “similar reforms” to electricity standing charges.
Chancellor John Healey says 20 million households in council tax bands A to D will receive a £100 “household energy payment” this winter. The payment will be deposited directly into bank accounts to help families cope with rising energy bills.
He confirmed that the Scottish, Welsh and Northern Ireland governments will receive a share of this funding.
The Chancellor has confirmed that the reduction in VAT on electricity bills from 5% to zero was due to end in March 2027, but will now be extended until July.
He has announced a further extension of the 5p fuel duty cut until next July.
Healey says the higher mileage rate for those who rely on their cars for work will rise from 25p to 35p per mile. He also confirms that the increase to the standard mileage rate will be made permanent.
What measures did the Chancellor previously announce this week?
Suspending tariffs on more than 100 supermarket products.
Pensioners with an income up to the value of the full new State Pension will not pay income tax during this Parliament.
Increasing both the National Minimum Wage and National Living Wage by 3.9%, benefiting 2.3 million of the lowest-paid workers.
Extending eligibility for paid parental leave to self-employed fathers and partners.
What did John Healey say about business rates in the Budget?
Healey announced that the threshold for small business rate relief for retail, hospitality and leisure businesses will rise from £12,000 to £18,000.
The change will mean 70,000 businesses no longer have to pay business rates.
Healey says the measure will be funded through higher taxes on gambling.
What did John Healey say about the tax free ISA allowanace?
Healey confirms that the planned cut to the annual tax-free allowance for cash ISAs will not go ahead, meaning savers can continue to deposit up to £20,000 a year tax-free.
He also announces plans to work with the sector to develop a new “Starter ISA”.
What did John Healey say about banks in the Budget?
The chancellor announces a temporary 3% increase in the bank surcharge to help fund immediate support for energy bills. The measure will come into effect in January and last for 15 months.
What did John Healey say about minimum wages for young workers?
Workers aged 18 to 20 will receive a 3.9% pay rise, matching the increase for those aged 21 and over.
What did the Chancellor say about AI?
“We are already world leaders in AI safety and security, which today’s Budget backs with an extra half a billion pounds.
What did John Healey say about local Mayors?
Healey says the government’s “fiscal devolution” plans will allow local authorities to retain 100% of business rates revenue by the end of the decade.
From next year, 20% of business rates revenue will go to mayors, with a share of income tax revenue also being allocated to them from 2028.
Mayors and some other local authorities will also gain powers from 2028 to introduce overnight visitor levies.
Healey describes the plans as the “biggest wave of devolution in a generation”, aimed at driving economic growth across the country.
What did John Healey say about Ukraine?
On Ukraine, Healey says he and Burnham spoke to President Zelensky earlier this morning to brief him on the support being announced today.
He announces an additional £10bn in economic and military support, including £500m in urgent military funding for the winter.
What did the Chancellor say about rough sleeping?
Healey says the government has already pledged to offer everyone sleeping rough a route “off the streets this winter”.
He adds: “Today, I confirm a further £430m to keep that offer open for the rest of this parliament.”
What did John Healey say about first time buyers?
Healey announced that a new First-Time Buyer ISA will replace the Lifetime ISA.
He also pledges to address the Lifetime ISA penalty, ensuring that buyers whose desired property exceeds the price cap get back “at least what you put in”.
The chancellor unveils the Your First Home Scheme, aimed at first-time buyers who “don’t have the bank of mum and dad behind them”.
The scheme, which has been widely trailed, is due to launch next spring and will be backed by £4.7bn in government-funded lending.
It is expected to allow first-time buyers to purchase a new-build home with a deposit of just 2.5%, alongside an equity loan worth 20% of the property’s value.