Overview
- Chancellor John Healey presented the first Burnham budget to Parliament on Wednesday, setting out a mix of small, immediate measures rather than a single large economic overhaul.
- The plan gives about 20 million households a one‑off £100 winter energy payment and suspends VAT on electricity until next July to lower bills for consumers.
- Healey raised the bank levy by three percentage points to help pay for a new £10 billion pledge to Ukraine and signalled increased defence spending alongside a £40 billion housing commitment.
- The budget shifts tax power to local government by giving councils 20% of business‑rate receipts next year and promising a share of income tax from 2028 to boost regional control.
- Markets reacted calmly while opposition leaders called the package inadequate and commentators noted that Labour’s polling lead has triggered speculation the government could seek an early election; the Milburn report on youth disengagement remains pending and could drive further policy changes.