Reported by The Guardian
Few surprises as chancellor uses low-key speech blaming ‘global economic storms’ for stoking energy prices and cost of living crisis
Briefing: key questions answered by Heather Stewart and Pippa Crerar
John Healey raised taxes on banks and landlords to fund a £100 winter handout for 20 million families as official forecasts made clear there is no end in sight for the cost of living crisis.
More from the original report
In his first budget, the chancellor blamed “global economic storms” for the grim outlook, as the war in Iran drives up oil and gas prices.
But he also faced criticism for failing to squeeze more money from profitable banks, punishing savers and not giving enough help to the poorest.
In a low-key speech designed with febrile bond markets in mind, Healey was at pains to stress he was sticking to Labour’s self-imposed fiscal rules, and there were few surprises in his hour-long address to MPs.
But with households facing soaring energy prices, and mortgage bills rising amid higher interest rates, Healey offered a £100 cost-of-living payout, which will be sent to all English households in council tax bands A-D.
It formed the centrepiece of a cost of living package, which he said would “take the pressure off in the coldest months, and see people through to the spring”.
The £2.6bn cost of the £100 giveaway includes funding for the Scottish and Welsh governments, which Healey said he hoped they would use to implement a similar scheme.
“I know that with the conflict in the Middle East, rising energy bills are a real worry. I know that people look to government at times like this, not to solve all their problems, but to give them a bit of breathing space,” he said.
But the government’s independent forecaster warned households face a “grim picture” on living standards, as it slashed the outlook for the economy in 2027 and said there was “virtually no growth” in disposable income for households.
Healey also came under fire for an unexpected 2p increase in tax rates for income earned on property or savings. As well as hitting savers and landlords, the…