Chancellor John Healey will unveil the Autumn Budget today, the first under new Labour Prime Minister Andy Burnham. The announcement is set to begin at 12.30pm and will be broadcast live on BBC Two, BBC iPlayer, ITV, Sky News and Parliamentlive.tv.
Healey's Tough Budget Warning
Last month, Healey indicated the UK will face a 'tough Budget', noting that the ongoing war in Iran will have a 'strong influence'. However, he added that he and Burnham were 'in lockstep in our determination to meet the fiscal rules'.
Recent reports suggest that over £1,000,000,000 for social and affordable housing in England will be provided, and mayors and regional leaders will receive greater powers and funding to invest in house-building.
Expected Announcements and Predictions
Healey is also expected to announce support for small breweries, as well as investment in defence, shortly after Wes Streeting's warning that the UK must be ready for war in 1,000 days and hot on the heels of a new government campaign urging Brits to be ready for emergencies and disasters.
One of the big questions ahead of the Budget is whether those who rely on the state pension could end up paying income tax. After last year's increase, the state pension was just below the £12,570 personal allowance threshold, with the triple lock almost guaranteeing it would exceed it this year – meaning the benefit would become taxable for the first time in history.
Pension and Energy Reforms
Healey is predicted to increase the tax-free allowance for pensioners on low incomes to £13,036 – the expected new state pension level – to prevent this from happening, according to the Sunday Times.
The chancellor is also expected to announce a series of 'deep reforms' to the UK's energy system to bring down household bills, possibly including measures to 'decouple' gas from electricity prices. Prime Minister Andy Burnham last week said he had instructed Healey and Energy Secretary Miatta Fahnbulleh to 'look at' removing standing charges from gas bills. The result may emerge at the Budget. Healey is thought to be planning billions in extra spending for defence.
