Chancellor John Healey has admitted the government can never completely remove cost-of-living pressures, with the nation facing higher energy bills than it did after Russia invaded Ukraine. The admission came as he unveiled a raft of measures designed to give struggling families "breathing space," funded in part by extra taxes on banks and gambling.
Energy Bills Set to Rise
Economists believe typical annual energy bills will reach £1,750 despite government support by next year. That compares with £1,685 after prices soared due to Vladimir Putin's illegal war. The Resolution Foundation analysis says the "scattergun" Budget was poorly targeted and warned the 2020s will be "an almost completely lost decade for living standards."
The foundation also found the gap in support between the poorest and wealthiest households is expected to be just £14. Average disposable income is expected to fall by over £1,000.
Support Measures Announced
On Wednesday, Healey announced a series of interventions to help with the cost of living, including £100 payments to 20 million households to help with rising energy costs. He also said controversial standing charges on gas bills would be scrapped, and pledged to look at doing the same for electricity.
There were also tax breaks for high street companies, with 70,000 - including cafes, shops and pubs - set to be removed from paying business rates. Vape shops and online retailers will be asked to pay more, a move Healey said was fairer.
Wealth Tax Calls
Earlier this year, more than 100 UK-based millionaires - including former Match of the Day presenter Gary Lineker - signed a letter urging new Prime Minister Andy Burnham to tax their wealth. Organised by the group Patriotic Millionaires UK, the letter called for higher taxes not on everyday workers, but on the very richest in the UK.
Burnham has previously suggested he backed a wealth tax, and recently claimed his government may have "to ask for a little more" from the richest. Patriotic Millionaires, along with the group Tax Justice UK, are proposing an annual 2% tax on wealth above £10 million. Tax Justice UK says it would affect around 20,000 people in the UK - fewer than 0.04% of the population.
