By Basant El-Faramawy
Chancellor John Healey delivered his first budget on Wednesday, characterized as a "flotilla of small measures" rather than major reforms. The 150-page Red Book contains 98 measures, most with minimal impact on Treasury spreadsheets.
Smaller Scale Than Recent Budgets
Overall tax and spending changes are smaller than recent budgets. Measures include higher taxes for savers, landlords, and banks. With income tax, national insurance, and VAT ruled out, the government targeted specific sectors, risking political backlash similar to farmer anger over inheritance tax changes under Rachel Reeves.
OBR Warns of Challenging Outlook
The Office for Budget Responsibility said the UK's economic and fiscal position remains very challenging, citing adverse developments from Middle East conflict. The outlook is uncertain, with significantly better or worse outcomes equally probable. National debt, tax burden, inflation, and interest rates remain high.
Targeted Support for Cost of Living
Healey announced £100 energy bill help for millions and council tax relief for bands A to D, aiming to avoid alienating the "squeezed middle." Think tank More in Common described the budget as "softly populist," targeting banks, landlords, gambling firms, and vape shops to fund support.
Opposition Criticizes Thin Offering
Opposition parties called the budget thin. The government argues it is one piece of a broader plan including youth employment, benefit cuts, and a long-term EU relationship vision.
Cautious Approach
Observers labeled it a "Mr Sensible Budget" – avoiding bells and whistles but also timebombs. The chancellor's capacity to make a noticeable positive difference appears constrained by economic uncertainty.
