Chancellor John Healey will deliver his first Budget today, promising "breathing space" for people, with a headline plan to scrap gas standing charges that cost typical households around £108 per year.
The Treasury said Mr Healey will ask regulator Ofgem to remove the fixed daily fees, which are added to bills regardless of how much gas a customer uses, "in 2027 or as soon as possible after". The move would cut around £45 a year from a typical household's gas bill.
Other Measures Announced
Tariffs on items including chocolate, beans and gherkins will be cut to make them cheaper for shoppers.
Mr Healey is reportedly planning to reverse the decision to slash the annual Isa allowance from £20,000 to £12,000. According to the Financial Times, he believes the allowance cut was the wrong tool to persuade Britons to invest more in stocks and shares and would rather educate savers on the benefits of equity investing.
Welsh Government Demands
The Welsh Government has made its list of demands clear, with finance minister Elin Jones saying £1bn of £14bn promised by Keir Starmer towards rail needs to "be brought forward now".
Budget Day Expectations
Other rumours circulating include cancelling January's planned increase in fuel duty, keeping the rate frozen for the 16th year at 52p per litre; making a higher tax-free mileage allowance of 55p permanent; a rise in the minimum wage by nearly 4%; and ending the Carers' Allowance cliff edge, which has penalised unpaid carers for going over their earnings limit, even by as little as a few pence per week.
Mr Healey will stand up at 12.30pm, after Prime Minister's Questions, to deliver the Budget, with the Office for Budget Responsibility (OBR) publishing its independent analysis of the UK's economic and fiscal situation on the same day.
