Chancellor John Healey Delivers First Budget With Targeted Support and Tax Changes

Chancellor John Healey delivered his first annual budget on Wednesday, introducing tax increases on banks and landlords alongside relief measures aimed at easing cost of living pressures for millions of households.

The announcements include a one-off £100 household energy payment for properties in council tax bands A to D in England, funded by an increased levy on banks and scheduled for delivery in January.

The package arrives as families confront soaring energy prices and broader economic strain driven by conflict in the Middle East and rising global costs.

Mr Healey addressed the situation during his speech to parliament.

“I know that with the conflict in the Middle East, rising energy bills are a real worry,” said John Healey, the chancellor.

“I know that people look to government at times like this, not to solve all their problems, but to give them a bit of breathing space.”

Additional measures involve abolishing standing charges on gas bills next year or as soon as possible after, a policy praised by money expert Martin Lewis.

The Treasury estimates that 60 percent of households will save an average of £45 annually under the change, though higher energy users could end up paying more.

The government also extended a temporary cut in fuel duty and maintained a VAT reduction on electricity bills until July.

To fund the support, the additional levy on bank profits will double to 6 percent for 15 months, while taxes on savings interest and property income will also rise.

Critics argued the measures do not go far enough to protect vulnerable citizens from impending price hikes.

“The chancellor has missed the mark with badly targeted support that has left families facing a tough winter as energy bills rise,” said Ruth Curtice, the chief executive of the Resolution Foundation.

Other analysts warned that higher taxes on landlords could ultimately lead to increased rents for tenants or prompt property owners to sell.

“Savers will be hit with another hefty tax rise on their savings interest, adding to the squeeze on their savings over the past few years,” said Laura Suter, director of personal finance at AJ Bell, according to The Guardian.

The Independent reported that the Green Party dismissed the elimination of standing charges as mere tinkering that fails to address the root causes of high energy expenses.

Independent forecasters project that disposable income growth will remain virtually non-existent for households through the coming year.