Chancellor of the Exchequer John Healey has promised his first Budget will help the UK navigate global economic turbulence, unveiling plans to scrap gas standing charges as part of efforts to ease the cost-of-living squeeze.
Mr Healey said his financial package was designed to support the "working people of Britain" as well as "business big and small". He described delivering the Budget "at a time when global uncertainties and pressures are swirling worldwide and hitting people here in Britain".
Impact of the Iran war
The war in Iran has contributed to the difficulties facing the economy, pushing up inflation as a result of higher oil and gas prices. The Chancellor's statement to the Commons comes against this backdrop of global economic uncertainty.
Ahead of the statement, Mr Healey announced that standing charges on gas bills will be scrapped from next year. The fixed daily fees are added to bills regardless of how much gas a customer uses, costing around £108 per year for a typical household.
Energy bill changes
Mr Healey said he was using the Budget to cut energy bills "for good", and signalled he will look into removing the fixed daily fees on electricity as well. He will ask regulator Ofgem to remove gas standing charges for around 23 million homes "in 2027 or as soon as possible after".
Instead, fixed costs will be paid on the unit rate, which the Treasury said could save 60% of households an average of £45 on their annual bills. The fee does not pay for the energy itself, but covers the cost of delivering gas and electricity to homes and businesses, including essential maintenance and infrastructure upgrades.
