UK Chancellor Healey says budget will be based on fiscal discipline, will boost growth and maintain fiscal control

BUDGET: Says he has GBP 15bln headroom (exp. GBP 15bln; vs March forecast of 23.6bln); seen at GBP 22bln by 2030/31 Says he will meet fiscal budget rules in the third year of the forecast Will use headroom to absorb some of the Middle East impact Will be no slash to public services, or any broad-based tax hikes OBR: OBR says the UK will spend GBP 14bln more in the current debt period OBR forecasts show budget deficit of 4.2% this year, and 3.4% next year Sees PSNB of 1.8% by 2030/31 (vs March's forecast of 1.6%) Sees PSNFL at 83.2% in 2026/27 (vs March's 82.6%), and 83.8% in 2027/28 (vs March's forecast of 82.9%) Sees UK GDP growth of 1.2% in 2026 (prev. saw 1.1%), 1.0% in 2027 (prev. 1.6%), 1.6% in 2028 (prev. 1.6%), 1.8% in 2029 (prev. 1.5%), 1.7% in 2030 (prev. 1.5%) TAXES: Will not increase taxes on working people ENERGY: Extends VAT cut on electricity through to July 2027 Says the priority is cheaper energy There will be an energy cost framework implemented Will scrap upcoming gas shippers obligation Says will only buy and build new projects when they lower bills, and when they can connect to the grid. Will further break the grip of international gas prices on consumer bills by moving more of our old renewables onto fixed-price contracts Will build cheaper, faster, grid connections through GB Grid Announces a GBP 100 payment for 2mln households, costing GBP 2.6bln Extends fuel duty freezes through July 2027 SUPERMARKETS: Will suspend tariffs on some products to help tariff impact WAGES: Minimum wage for workers aged 21yrs+ will rise by 3.9% Will also be raised by 3.9% for 18-20yr olds Minimum wage to rise 3.9% BUSINESS RATES: Is increasing business rate relief for small shops, hospitality and entertainment businesses to GBP 18k Will carve out vape shops from relief GAMBLING: Will raise gambling taxes; gaming machines taxes will rise from 20% to 25% PENSIONS: Is delivering the new pension tax allowance so that pensioners with income of up to the value of the full new state pension will not pay income tax in this Parliament INVESTMENT: Is raising taxes on income from property No change to ISA thresholds, will remain at GBP 20k; will introduce a 'new starter' No changes to tax on dividends, or changes to tax on employment income BANKS: Corporation taxes for banks to rise 3ppts, will be temporary GLOBAL ECONOMY: Says the UK faces global economic storms