Healey expected to target banks and retailers for Budget cost-of-living support
Chancellor John Healey is expected to use his first Budget to offer targeted help with living costs while limiting new spending, as strained public finances and economic uncertainty leave little room for major giveaways. Measures are reportedly set to include energy bill support for poorer households, a fuel duty freeze, help for first-time buyers and tax relief for smaller businesses, funded partly by new taxes or levies on banks and online retailers.
The Budget is due to be presented to MPs at 12.30pm on Wednesday, with welfare changes expected next year rather than in this announcement. The Government’s fiscal buffer, forecast at about £24 billion in March, may have fallen to around £12 billion, according to the Resolution Foundation. Frozen income tax thresholds are also set to continue, drawing more people into higher tax bands; meanwhile, a proposed allowance for low-income pensioners aims to address the state pension rising above the £12,570 personal allowance.
In short
- Healey is expected to offer targeted cost of living support.
- Banks and online retailers could face new charges.
- Major welfare changes are expected next year.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Targeted support for energy bills and fuel costs could ease pressure on households least able to absorb further price rises, while help for first-time buyers and smaller businesses may support financial security and economic activity. Asking banks and online retailers to contribute could raise funds from sectors seen as able to bear the cost, allowing the Government to help people while limiting borrowing.
The case against
With public finances under strain, new levies on banks and online retailers could be passed on through higher prices, reduced services or lower investment, so households and businesses may ultimately bear some of the cost. Targeted measures and continued frozen tax thresholds may also leave many people facing higher bills or tax, while uncertain funding and a thinner fiscal buffer could make the package difficult to sustain.
Explained simply
A Budget is the Government’s annual plan for taxes and public spending, set out by the Chancellor of the Exchequer to MPs. It affects household bills, public services and businesses, and is shaped by how much the Government expects to raise and spend.
John Healey is the Chancellor, responsible for setting that plan. The Government has limited room to spend more because its financial buffer appears to have shrunk, while frozen income tax thresholds mean some people may pay tax at higher rates as their incomes rise.
Banks and online retailers are among the businesses that could face new taxes or levies to help pay for support. The choices matter to households facing living costs, smaller firms and people whose tax bills may change; welfare changes are expected at a later date.
Business Economy Markets UK World
Read the full article at the source →
Originally published by Daily Mail as “What to expect in tomorrow’s Budget: John Healey set to raid banks and crack down on Amazon to help fund cost of living help and fuel duty freeze – but welfare cuts aren’t coming”.