What to expect from John Healey’s first budget: who wins, who pays?
Summary
John Healey is expected to present a budget focused on household costs, energy bills, first-time buyers and defence spending. Higher debt-interest costs have reduced the government’s projected financial buffer, while the article says Healey cannot raise income tax, National Insurance or VAT rates without breaking manifesto commitments.Key Facts
- The government is expected to spend about £1.42tn on day-to-day services and public investment this year.
- About £100bn is expected to go toward debt interest, which has risen as government borrowing costs increased.
- The Resolution Foundation estimates that the government’s £24bn budget buffer may have fallen to about £12bn.
- The budget is expected to extend parental pay to more than 150,000 additional parents each year and change rules for unpaid carers.
- Healey plans to spend more than £1bn to help poorer households with energy bills, including by expanding the Warm Home Discount.
- The budget is expected to set out details of a first-time buyer scheme offering a 20% equity loan for new-build homes and a minimum deposit of 2.5%.
- Healey aims to address a £4.7bn shortfall in the defence investment plan, mainly through cuts to other departments, according to the article.
- The article says Healey has ruled out raising income tax, National Insurance and VAT rates because of manifesto commitments.
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