Readers have reacted with anger and disappointment to Chancellor John Healey's first Budget, with one calling it "a joke, I'm sorry, but a massive joke!" and another saying it "won't even scratch the surface, what the hell were they thinking".
Mr Healey delivered his first Autumn Budget in the House of Commons today, announcing changes to taxes, energy bills and cash ISAs in a bid to give households and businesses "breathing space" from everyday costs. The "steady-as-she-goes" Budget meant limited scope for big giveaways due to the stretched state of public finances, made worse by international market turmoil caused by the Iran war.
Budget measures announced
Announcing his fiscal plans, the Chancellor called the Budget "a Budget for the working people of Britain", focusing on "fiscal discipline, immediate action for today and relief for the future". He stuck with rules set out by his predecessor Rachel Reeves, requiring day-to-day spending to be financed by taxes rather than borrowing.
He promised to use his first Budget to cut energy bills "for good" as the Government continues to ease surging costs. Changes include a new £100 energy bill payment to households and scrapped standing charges on gas bills.
Other major changes include confirmation of new rates for the state pension and other benefits from April next year, new tax rules to prevent low income state pensioners paying income tax when the full state pension exceeds the personal allowance, an end to the Carer's Allowance earnings threshold "cliff edge", and a rise in the minimum wage by nearly 4 per cent.
Reader reactions
There was a strong reaction to the announcements as they were delivered from 12.30pm today. Paul Holmes said on Facebook: "That £21 a year saving on a good shop will be handy, I've my eye on a tin of Beans for Christmas Day."
Mark Harris wrote: "Not fair that the threshold has moved for pensioners who only have the state pension but if you have a tiny private pension you'll get taxed." Rachel Barry said: "The standing charges are being added to each unit price so effectively adding more to the people that need to keep there heating on! Older people and families with kids! No one is getting anything given here just shifting the cost around."
Dave Mills penned: "Don't be fooled by getting rid of standing charge on gas. It's 2027 before it kicks in and unit price is going up to pay for it. Some will save but some will lose out. Also he has increased tax on savings from 20% to 24%. You currently pay 20% tax on interest totalling over £1,000, this will rise to 24%. Shouldn't be taxed on that in first place."
Referring to the £100 energy payment, Andy Savoury said: "Not available to older people or pensioners as most will have band e homes or above that they bought whilst they were working." Ian Sanderson said: "It won't even scratch the surface, what the hell were they thinking." Michelle Hobson commented: "That might get me a block of cheese a pint of milk and a few jars of gherkins."
Some support for the Budget
However, some readers were in favour of Mr Healey's Budget. Alex Sim said: "When the nation's finances are so stretched I thought this was actually a pretty decent balanced budget that will give some breathing space on bills for us all." Craig Hughes said: "Well done, John." Chris Render said: "I don't vote Labour but thank god they have listen and attempting to do something to try and help more than any previous governments have done in the last 20 years."
