By Fatma Younis
Chancellor John Healey unveiled a £100 energy bill payment for around 20 million households in council tax bands A to D during his autumn Budget on Wednesday, a measure costing £2.6 billion. The payment will be made directly into bank accounts this winter, alongside an extension of the VAT cut on electricity until July, which reduces the annual price cap by £50.
Tax changes target property and savings income
Healey announced a surprise two percentage point tax increase on income from property and savings. The chancellor also confirmed a temporary rise in bank tax, while extending the fuel duty cut until July 2027 and raising the minimum wage by 3.9 per cent.
New Starter ISA aims to encourage first-time investors
The Budget introduced a "Starter ISA" for new investors, reversing previous plans to limit cash ISA subscriptions. Industry representatives welcomed the move as a "carrot over stick" approach to shifting savings into long-term investments, though details on contribution limits and eligibility will be determined through consultation.
IFS warns of difficult decisions ahead
The Institute for Fiscal Studies cautioned that the government has left itself "many difficult decisions" against a backdrop of lower fiscal headroom, worse living standards, and continued economic risks. The think tank said the Budget contained a "raft of fiddly measures but very little that will move the dial on growth," flagging next year's Spending Review as a crunch point.
OBR highlights Brexit trade barrier impact
Office for Budget Responsibility economist Professor David Miles said the outcome of Brexit negotiations "almost certainly" created trade barriers with "damaging" side effects to GDP, maintaining the OBR's assessment of a 4 per cent reduction in UK GDP.
Cost-of-living pressures persist for low-income households
Despite the measures, individuals like Kim from Gateshead, who receives £800 monthly on Universal Credit, said the changes make little difference. "The food shop, just even buying cleaning things. The changes on prices don't make any difference," she said, calling for more social housing and urging politicians to see conditions on the ground.
