Chancellor John Healey will present his first Budget today, outlining the government's tax and spending plans for Prime Minister Andy Burnham's administration. The announcement is set to take place in the House of Commons this lunchtime, with a broadcast expected from 12.30pm following Prime Minister's questions.
People across Merseyside and Britain are looking to the government for help with the cost of living ahead of what is expected to be a difficult winter. Mr Healey was in Liverpool last month for the Labour Party Conference, where he told the ECHO he would do all he can to protect people and businesses from economic headwinds.
Healey's promises ahead of the Budget
Speaking ahead of his Budget speech, Mr Healey said: "Breathing space for today and fresh hope for the future. That's what today's Budget will deliver." In a video message shared on social media, he added: "The world's a highly uncertain place. Conflicts abroad are pushing up energy prices, and the cost of living here at home - piling pressure on the families, on businesses, and on our public finances."
He also noted that Britain's economy is showing signs of resilience, with investments up, productivity growing, and the joint fastest growth in the G7 in the first half of this year. He said the Budget is designed to give households breathing space from everyday costs, provide targeted support for businesses and self-employed people, and start long-term action to get energy costs down.
Mr Healey promised to back British businesses and entrepreneurs, invest in technologies that drive future growth, build more homes, and shift power out of Whitehall so local leaders can drive growth in every postcode. He also said the government would strengthen national security and defences, as well as support for Ukraine, while sticking within tight fiscal rules.
Expected announcements and local impact
Announcements expected today include a rise in the minimum wage for people aged over 21, a doubling of funding for supporting rough sleepers, and an end to the earnings 'cliff edge' for unpaid carers. The Prime Minister has pledged that the Budget will set out how the government will fully fund its defence commitments.
The government has stated the Budget will introduce Good Growth funding for local leaders, including Liverpool City Region Mayor Steve Rotheram, giving them flexibility and authority to invest in local priorities without permission from Whitehall. An initial £285 million in transitional seed funding will be allocated by government next year to support Mayors and local leaders across England.
Liverpool will receive a share of further funding announced by the Chancellor to help with the pledge to end rough sleeping. Mr Healey will commit another £432 million to offer those on the streets a route out before Christmas.
Business concerns over rates and VAT
Small business owners across Merseyside have raised concerns about business rates, a direct tax paid by businesses including shops and pubs, which usually depends on the rental value and size of a property. Fiona Hornsby, new owner of the Swan Inn in Liverpool city centre, said she has seen a dramatic change to the rates she has to pay. She said: "When we bought the Denbigh Castle in 2020, the business rates were £14,000. They're now £48,000. But, the pub's no bigger. You've spent a load of money, you've created a load of jobs, and then you're penalized for making a business successful. It doesn't make any sense to me."
Ansil Kharel, who opened Momo's restaurant on Lime Street at age 19 in May 2022, told the ECHO ahead of the Budget: "What I'd like to see is little independents like me being supported by even just a 5% VAT reduction, or any of these crazy ridiculous taxes getting reduced, because as a small business, I don't put the cost onto the customer. I put the cost on myself."
The Chancellor previously told the ECHO in Liverpool: "It was the first week that we moved not just to give people a bit of breathing space, with the bus fare cap, taking VAT off electricity bills but we recognised there is a cost pressure to businesses as well, so the cut in business rates for pubs, clubs, music venues and social clubs was a sign that we will do what we can to give the country a breathing space." He added: "I will do what I can in the budget to give the country and businesses that bit of breathing space."
As the announcement approaches, much remains unknown about today's Budget, with details and analysis expected to emerge throughout the day.
