Chancellor John Healey’s first budget offers energy support funded partly by higher taxes on banks, according to reports by Euronews and the Guardian. The Resolution Foundation, a think tank, says the package is poorly targeted and does little for living standards.
The additional corporate tax rate on banks’ profits will double to 6% to finance a one-off subsidy to millions of households, according to Euronews. Healey announced a direct payment of £100 to 20 million households in council tax bands A to D to help with soaring energy bills, Euronews reported.
The Guardian, in its account of the budget, said the measures include scrapping standing charges on gas bills. The paper describes the cost-of-living measures as aimed at rising prices linked to the Iran war. Euronews ties the energy price surge largely to the Middle East conflict.
The Resolution Foundation says the poorest half of households will gain an average of £158 this year and next from subsidies, against £144 for the richest half, according to the Guardian. The think tank also predicts typical disposable incomes will fall by £1,050 by the end of the parliament in 2028-29.
The foundation also says the energy discount scheme relies on property valuations that are 35 years old to determine eligibility for energy bill support this winter. The Guardian reported this criticism as part of its coverage.
Healey told parliament that GDP growth is estimated at 1.2% in 2026 and is forecast to slow to 1.0% in 2027, Euronews reported. The Office for Budget Responsibility has cut its forecast for next year’s GDP growth, but neither source quantifies the cut.
Healey also announced a First-Time Buyer ISA to replace the Lifetime ISA, a change to the triple lock and a new national care service. He said the care service would save £15bn a year by the end of the 2030s. No independent source confirms the cost estimates for the triple lock or the care service.
Andy Burnham has claimed that the business rates change will lift 70,000 businesses out of rates. That claim is his own and has not been verified by the sources available.
Neither source reports a government response to the Resolution Foundation’s criticism. The coverage available is limited to a Guardian article, which appears to be an excerpt, and a Euronews article, so details of the gambling tax rise are thin.
Parliament will scrutinise the budget measures. The £100 energy payments are due to reach households through the coldest months. The Resolution Foundation says harder choices between public services and household incomes will come next year.
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This article was written with AI assistance from the published reporting listed above. It is part of the World Brief daily news podcast.