***JOHN HEALEY’S UK BUDGET***

ECONOMY

— says the world faces “economic storms” from Trump’s war in Iran
— 2027 growth forecast lowered to 1% from 1.6%
— fiscal headroom will be £15b
— borrowing will be higher in every year of the forecast compared to what was seen in March

HOUSEHOLD ENERGY SUPPORT

— £100 energy payment for households for 20 million households in council tax bands A-D, costing £2.6b
— VAT cut on household electricity bills extended to next July, taking £50 off price cap
— gas standing charges removed from household bills, similar reforms to follow for

TAX CHANGES

— bank surcharge raised to 6% from 3%, temporarily, for 15 months starting in January
— small business rate relief threshold for retail, hospitality, leisure raised, taking 70,000 businesses out of paying business rates
— that’s paid for by raising taxes on gambling, with gaming machines duty raised to 25% from 20%, and carving out gaming centres and vape shops from business rates relief
— on capital gains, increasing rates on income from property and savings by 2 percentage points
— cut to Business Asset Disposal Relief
— new pensioners’ tax allowance so state pension isn’t taxed
— limit on cash ISAs to stay at £20,000
— extending tax cuts for motorists to July
— suspending tariffs on 100+ supermarket products

DEFENCE

— says UK will spend 3% of GDP on defence by 2030, with funding set out in the spending review
— £10b of additional economic and military support for Ukraine based on loans, export finance guarantees and urgent funding for the winter
— Defence Investment Plan will be fully funded

INVESTMENT

— £20.4b for National Wealth Fund
— new British Data Centre Covenant to require data centres to invest in local communities
— new young entrepreneurs allowance
— reforming skilled worker visas, non-compete clauses
— founders relief on capital gains tax for entrepreneurs
— extra £1.5b for social/affordable housing
— first time buyer ISA to replace lifetime ISA

DEVOLUTION

— 100% of business rates to be retained locally by end of decade
— 20% of business rates will go to mayors from next year
— from 2028 mayors will have powers for a visitors levy

WELFARE CUTS

— pledges to bring down welfare bill
— says govt will respond to the Milburn report this year and publish a white paper and legislation next year