What to expect from John Healey’s first budget: who wins, who pays?
Source: The Guardian ·
Struggling households, new homebuyers and small shops stand to gain, while banks and online marketplaces could face higher levies John Healey will present his first budget on Wednesday, which will set the tone for Andy Burnham’s premiership.Despite the chancellor’s promises in the summer that the tax and spending event would not be beset by the leaks that preceded those of his predecessor,…
From the source
John Healey will present his first budget on Wednesday, which will set the tone for Andy Burnham’s premiership. Despite the chancellor’s promises in the summer that the tax and spending event would not be beset by the leaks that preceded those of his predecessor, Rachel Reeves, both official and unofficial sources have indicated much of what Healey is likely to announce. Here’s what to expect: Healey will allocate about £1.42tn this year on day-to-day spending and public investment. About £100bn of this will go on debt interest after a rise in the interest rate the government pays to multidecade highs. Most of this increase can be blamed on the Gulf conflict launched by the US and Israel at the end of February, which has taken the oil price to above $110 a barrel and the price of gas to levels not seen since late 2022. Government borrowing in this financial year has fallen compared with 2025-26, but not by as much as the Office for Budget Responsibility estimated in March, mainly…