Budget Measures and Criticism
Chancellor John Healey delivered his first budget on Thursday, introducing measures intended to cushion households from rising inflation and energy costs. These include scrapping standing charges on gas bills and providing £100 energy payments to up to 20 million households in council tax bands A to D. However, the Resolution Foundation warned that the budget was poorly targeted and left Britain facing a painful second half of the parliament. The thinktank stated that the energy discounts were spread too thinly, leaving families with higher energy bills than during the previous energy shock, while providing the richest half of households with nearly as much support as the poorest.
Economic Outlook
The foundation projected that typical disposable incomes would fall by £1,050 between now and the end of the parliamentary term in 2028-29, limiting growth over the five-year period to £600. The Office for Budget Responsibility also slashed its forecast for gross domestic product growth next year amid global economic pressures. Alongside cost-of-living measures, the budget included tax breaks for high street businesses, such as lifting 70,000 businesses out of business rates entirely, alongside tax hikes on banks and gambling.