Chancellor John Healey has placed long-term energy market reform at the heart of his first Budget, aiming to provide “breathing space” for households and businesses ahead of a tough winter. The Budget is expected to include modest tax rises, targeting banks and the gambling sector, alongside £20.4bn in additional support for the state’s business lender and infrastructure bank. Healey emphasized fiscal responsibility, promising to operate within tight rules to reassure bond markets.
Energy costs remain a central theme, with plans to expand the warm home discount to 6mn families, extend a fuel duty freeze, and explore removing standing charges from gas bills. The government is also reviewing the link between electricity and gas prices to reduce exposure to volatile fossil-fuel costs. Former Tory chancellor Sir Jeremy Hunt warned that a “steady as she goes” approach would only defer a future fiscal reckoning.
The UK’s 10-year gilt yield stands at 5.3%, near its highest since 2007, while the fiscal headroom buffer has shrunk to around £15bn. City executives anticipate a bank profit tax surcharge increase from 3% to 8%.
Source: Financial Times Companies · Summarized by HeadlinesBriefing