By Basant El-Faramawy
Chancellor John Healey announced a £100 energy bill payment for approximately 20 million households in council tax bands A to D during his autumn Budget on Wednesday. The measure, costing £2.6 billion, will be paid directly into bank accounts this winter. Healey also extended a VAT cut on electricity until July, reducing the annual price cap by £50.
Economic Forecasts Revised
The Office for Budget Responsibility downgraded its GDP growth forecast for next year to 1 per cent from a previous 1.6 per cent, while upgrading this year's outlook from 1.1 per cent to 1.2 per cent. Healey cited pressures from the Middle East conflict as a factor behind the support package.
Additional Measures
Other announcements included extending the fuel duty cut until July 2027, a 3.9 per cent rise in the minimum wage, and a temporary increase in the bank corporation tax surcharge from 3 per cent to 6 per cent, bringing the combined headline rate to 31 per cent.
Business and Expert Reaction
Hospitality business owner Tommy Banks criticized the Budget, saying the minimum wage increase without sufficient sector support would force cost-cutting and closures. Tax expert Chantal Van Stipriaan noted the bank surcharge increase was smaller than anticipated, contributing to a positive stock market reaction.
Opposition Criticism
Conservative leader Kemi Badenoch dismissed the Budget as "not good enough," arguing the tax burden would reach a historic high and accusing Labour of prioritizing welfare over resilience. She welcomed additional support for Ukraine but criticized the delay in defence spending increases.
