By Salma El-Sakka
Chancellor John Healey delivered the first Budget of the Andy Burnham administration, announcing measures to ease cost-of-living pressures while raising taxes on landlords and cutting growth forecasts.
Household support and tax breaks
Millions of households will receive a £100 payment to help with soaring energy bills, and a VAT cut on electricity will be extended until July. The Budget also includes tax breaks for high street businesses, changes to the first-time buyer ISA, and a reversal of the previous cash ISA limit reduction.
Landlord tax increase
Landlords face an additional 2 percentage point increase on property income tax rates, raising concerns about future rental supply and potential rent increases.
Economic outlook and fiscal headroom
The Office for Budget Responsibility cut its 2027 growth forecast for the UK economy from 1.6% to 1%, largely due to the Iran war driving up oil prices. Defence spending remains unaddressed. The government retains £15bn of fiscal headroom by the 2029/30 financial year despite rising bond yields, with Healey pledging fiscal responsibility and a long-term goal of reducing debt.
Budget calculator
The Independent has launched a Budget calculator, created by tax advisory firm Blick Rothenberg, to help individuals assess the personal impact of the announcements.
