British Chancellor John Healey has unveiled billions of pounds of support for households struggling with rising costs, in the first UK budget of Prime Minister Andy Burnham’s government.
Healey said the country was facing “global economic storms,” including the energy price shock from the war involving Iran, conflict in the Gulf, trade tensions and the war in Ukraine. “Those are the storms we face. We can’t wish them away. We must choose the course we steer through them,” he told Parliament.
Key Measures in the Budget
- £100 energy payment: about 20 million households in lower-valued homes will receive a one-off payment, costing £2.6 billion.
- Gas standing charges removed: the government says this will lower bills for most households.
- Fuel duty freeze: the temporary 5p cut first introduced in 2022 is extended until at least July.
- Tax rises: higher taxes on banks, gambling, and on income for savers and landlords.
- Online marketplaces: tighter VAT rules for platforms such as Amazon and Temu.
- Investment: more than £20 billion in extra backing for state finance institutions, targeting artificial intelligence, defence and green energy by the early 2030s.
- Business: cuts to paperwork that Healey says will save firms £800 million a year.
- Trade: tariff cuts on some imported goods.
Growth Forecast Cut for 2027
The Office for Budget Responsibility (OBR) slightly raised its growth forecast for 2026 to 1.2%, but cut next year’s forecast to 1.0% from 1.6%. The government’s fiscal buffer has shrunk to £15 billion from £24 billion, as borrowing costs have risen sharply in Britain and worldwide since the start of the Iran war.
Healey defended using part of the buffer. “That’s what a buffer is for. Use it when you need it. Rebuild it when you can,” he said, adding that the budget puts the government on track to eliminate the current budget deficit within three years.
A “Steady As She Goes” Budget
Burnham, who became prime minister in July, has promised “the biggest changes in the last 40 years,” including a bigger role for the state in the economy. But after large tax and spending increases under former chancellor Rachel Reeves, and with public debt at around £3 trillion, Healey’s first budget was framed as a cautious one that avoids unsettling bond markets.
What It Means for Nigerians in the UK
The UK is home to one of the largest Nigerian diaspora communities in the world. Many Nigerian families renting or living in lower-valued homes could qualify for the £100 energy payment, while the fuel duty freeze helps drivers and delivery workers. However, Nigerian landlords and those with significant savings in the UK may face higher taxes under the new measures.
Sources: Reuters via Cyprus Mail and Investing.com, The Standard (Hong Kong). Image: Wikimedia Commons.