British households face 'grim picture' despite Healey’s budget

Become an Independent member to bookmark this article Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Membership today. Join today Already a member? Log in British households face 'grim picture' despite Healey’s budget Athena Stavrou Thursday 29 October 2026 08:10 GMT Bookmark popover Removed from bookmarks Close popover Budget 2026 analysis: What it means for households, businesses, and the economy Chancellor John Healey delivered his first Budget, introducing targeted support including a £100 energy bill reduction for 20 million homes, a 3.9 per cent minimum wage increase, and extended VAT relief on electricity.

The tax burden reached a new high, funded partly by a two per cent increase in taxes on property and savings income alongside a temporary doubling of the bank surcharge to 6 per cent. The Office for Budget Responsibility slashed next year's GDP growth forecast to 1 per cent and warned of a dismal outlook for real household disposable income. The Institute for Fiscal Studies criticised the measures for failing to boost economic growth, warning that higher property taxes could result in increased rents for tenants.

Opposition parties criticised Healey after he postponed setting out plans to raise defence spending to 3.5 per cent of GDP until next year's spending review. In full Healey warned of ‘grim’ squeeze on households despite £100 Budget energy bill help for poorest