Healey’s First Budget Taxes Banks to Fund £100 Energy Payment
John Healey’s first Budget gives about 20 million households a one-off £100 towards energy bills, costing £2.6bn. It is paid for by doubling the bank surcharge to 6% for 15 months and raising tax on savings and property income. He promised families “breathing space now” against “global economic storms”, but deferred big decisions on defence and welfare until next year.
The Budget was built to calm the gilt market; ten-year yields fell about two basis points as he spoke, and bank shares were among the FTSE 100’s biggest risers. A senior government figure told the FT it was “not radical, but we don’t think the markets would have worn something bigger”. Kemi Badenoch called it “not bold enough”. The IFS’s Helen Miller saw “a raft of fiddly measures but very little that will move the dial on growth”. Healey also promised regional mayors 20% of local business rates, rising towards 100% by the end of the decade. This morning’s front pages largely judged the Budget modest.