Chancellor prepares first Budget with tax and spending focus

Summarised from 2 outlets · Updated 24 Oct, 08:20 · Archive

Chancellor John Healey is preparing his first Budget on 28 October, with expected announcements on tax, defence spending and energy support.

Chancellor John Healey will deliver his first Budget on 28 October. He faces pressure to find billions in savings to increase Britain's military spending whilst ensuring the government's pledges are fully funded. Labour promised in its election manifesto not to increase income tax, national insurance or VAT, so pre-Budget speculation has centred on which other taxes might change.

Energy support is expected to be a major focus of the announcement. The government has already cut VAT on electricity bills, but Mr Healey indicated further help would come. He told ITV News: 'Energy costs are punishing at the moment. We will do what we can in the Budget, both for business and for households, to give people a bit of breathing space.' The government is reportedly planning to spend over £1bn on greater discounts for households less able to afford rising costs, particularly ahead of the energy price cap rise in January.

Tax changes under consideration have included inheritance tax, capital gains tax and other levies. The Guardian reports that inheritance tax has become of growing concern among families as rising house prices and frozen allowances mean more estates are now affected, despite the tax currently being paid by about 5% of estates.

How it is being reported

• Five key tax talking points before next week’s budgetAs the chancellor prepares for 28 October, we unpack the facts and figures – and the implications any changes could mean for you As John Healey prepares his first budget as chancellor, tax is the small word that is likely to cast a large shadow over next week’s big fiscal announcement. In its election manifesto , Labour promised not to increase the “big three”: income tax, national insurance and VAT. Continue reading...The Guardian · 24 Oct, 08:00
• The tax rises and cuts to expect from the Budget – from inheritance to capital gainsThe chancellor is preparing to deliver his first Budget on October 28The Independent · 23 Oct, 13:35

In this story: John Healey · Labour · United Kingdom

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