John Healey is delivering the first budget of Andy Burnham’s premiership, which he dubbed a budget “for the working people”.
Here are the key points:
- Some green levies have been taken off household energy bills and moved into general taxation, meaning bill payers may see monthly charges fall.
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As announced in September, the government has cut tax on electricity bills to zero, this VAT cut has been extended until July.
- The standing charge on gas bills is being scrapped, the chancellor announced this morning. About 23 million homes will benefit from removing the levy, which is paid regardless of how much or little gas is actually used. Treasury estimates say the removal will lift £45 off an annual bill for 60% of households, as the charge is instead levied on the unit rate.
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Twenty million households in council tax bands A to D will get a new £100 energy payment.
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Tariffs have been removed from more than a hundred imported food items, including gherkins, baked beans, and chocolate, which the government said could save up to £21 a year.
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The minimum wage is to rise to 3.9%.
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Banks are to be subject to higher taxes, with the chancellor upping the banks’ surcharge. It means lenders will face a levy of 6%, up from the current 3% they pay in addition to corporation tax of 25%.The levy will begin in January and last for 15 months.
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The threshold at which retail, hospitality and leisure businesses pay rates, a charge on commercial properties, has been increased from £12,000 to £18,000. It means half of our shops, restaurants and gyms pay no business rates, the chancellor said.
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Pensioners receiving the state pension are to be shielded from paying income tax this quarter.
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Plans to slash the annual cash Individual Savings Account (ISA) have been scrapped. The allowance will remain at £20,000 rather than falling to £12,000 as announced by the former chancellor Rachel Reeves at the budget last year.
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The treasury will wok with the private sector to create a new starter ISA to reward first time investors.
- The tax on higher risk slot machines will rise from 20% to 25%.
- Mr Healey said he will strengthen the requirements for online marketplaces to collect VAT from online sellers.
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