He faced a fraught task of trying to help millions of struggling households without hitting economic growth with even higher taxes.
asserted
He → face → taxes
Here are the key points as announced in the Commons:
asserted
points → announce → Commons
The Office for Budget Responsibilty has upgraded its economic growth forecast to 1.2% this year, Mr Healey said, followed by 1% next year, 1.6% in 2028, 1.8% in 2029, 1.7% in 2030 and 1.6% in 2031.
asserted
Healey → upgrade → 2031
Given the slow GDP growth, the Chancellor added: “Yes, there are real challenges ahead, but Britain has beaten the forecasts this year, And with the action I’m taking today, I believe Britain can beat them again.”
asserted
Britain → give → them
Debt
Britain will spend £14bn more on debt interest this year, says the Office for Budget Responsibility
Borrowing
Borrowing falls to 4.2% this year, 3.4 next year, 2.9 in 28/29, 2.1 in 29/30, and 1.8 in 30/31 and 31/32 the Chancellor said.
asserted
Chancellor → spend → 30/31
The “fiscal headroom” will be £15bn in 2029/30, before rising to £22bn in 2030/3
Energy bills
Standing charges on gas bills, which cover the cost of delivery to homes and businesses, will be scrapped from 2027 “or as soon as possible after,” says the Treasury.
asserted
Treasury → rise → 2027
VAT has been axed from electricity bills.
asserted
VAT → ax → bills
The Chancellor stressed that for business, the new British Industrial Competitiveness Scheme will take 25% off electricity bills for 10,000 firms.
asserted
Scheme → stress → firms
Help for struggling households
20 million households in council tax bands A-D will get a £100 ‘Household Energy Payment’ paid directly into their bank accounts to help deal with rising energy bills.
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households → struggle → bills
The scheme wil cost £2.6bn scheme.
asserted
scheme → cost → scheme
Fuel duty
The 5p cut to Fuel Duty and reduction in red diesel to its lowest rate in over 20 years are extended until July.
asserted
cut → extend → July
Tariffs on more than 100 supermarket products, including chocolate and gherkins, are suspended to keep prices down.
asserted
Tariffs → include → prices
Around 2.3 million people on low pay will see a 3.9% rise in the National Minimum Wage and the National Living Wage.
asserted
people → see → Wage
Devolution of powers
Mr Healey promised a “radical devolution of powers and resources to local leaders,” including to London Mayor Lord Sadiq Khan, as he sought to find economic growth.
asserted
he → promise → growth
“More power in the hands of the local leaders who know their areas best,” he said.
asserted
he → know → areas
Mr Healey hit the City with an extra 3% on the Bank Surcharge to fund help on energy bills for less well off households
Corporation tax
The Chancellor said he was maintaining full expensing in Corporation Tax for eligible assets.
asserted
he → hit → assets
He added: “For other assets, I will provide greater upfront relief for new investment, increasing the main rate first-year allowance from 40% to 50%, while reducing the main writing down allowance from 14% to 12%.
asserted
I → add → %
He also cut the threshold for Business Asset Disposal Relief in Capital Gains Tax from £1m to £500,000, which he stressed meant no change for 3 in 4 claimants.
asserted
he → cut → claimants
He added: “I am increasing the rates of tax on income from property and savings by a further two percentage points from April 2027.”
asserted
I → add → April
Business rates
The threshold for Small Business Rate Relief for retail hospitality and leisure businesses was increased from £12,000 to £18,000.
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threshold → increase → 18,000
Tax reforms
Mr Healey gave HMRC funding to improve compliance, and stronger powers to collect overdue tax from those he said can clearly afford to pay, but ignore repeated contact.
asserted
he → give → contact
He added: “I am reforming the administration of self-assessed income tax from 2029… …bringing more of these taxpayers in line with the majority, So that they make smaller, more regular payments instead of facing larger bills that are harder to pay.”
asserted
that → add → bills
Gaming tax
The Chancellor raised Machine Games Duty from 20% to 25% for higher stakes machines.
asserted
Chancellor → raise → machines
The Chancellor ditched his predecessor Rachel Reeves’ plan to cut the cash allowance for tax-free ISAs from £20,000 to £12,000.
asserted
Chancellor → ditch → 12,000
Summing up his plans, Mr Healey said: “This Budget is designed to give households breathing space from some of the everyday costs, provide targeted support for businesses and self-employed people, and to start the long-term action needed to get energy costs down for good.”
asserted
Budget → sum → costs
The Aporia
