Healey seeks to steer UK through 'difficult moment' with low-key budget
TLT•Finance minister John Healey is set to announce a cautious budget, with higher taxes expected for banks, gambling firms and online marketplaces. Budget forecasters are expected to say fiscal headroom has fallen to £15 billion from £24 billion in March.
1. Expected budget measures
Healey is due to announce his first budget in parliament on Wednesday. Higher taxes are expected for banks, gambling firms and online marketplaces, helping fund support for poorer households facing high energy bills and a fuel duty freeze for drivers.
2. Debt and spending constraints
The government’s options are constrained by rising borrowing costs. Britain paid the highest interest on a five-year government bond since 2008 on Tuesday, while forecasters are expected to put the margin for meeting the more challenging fiscal target at £15 billion, down from £24 billion in March.
3. Energy bill changes
The government said it would remove fixed daily standing charges from gas bills and instead link costs to the amount of gas consumed. Healey has also said he would reduce business paperwork to save companies £800 million a year.
