John Healey's Budget highlights from energy bills to Ukraine pledge

To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Up Next Previous Page Next Page John Healey has wrapped up his first Budget since being appointed by Labour Prime Minister Andy Burnham. The Chancellor of the Exchequer delivered the speech in the House of Commons today, outlining a number of expected measures including cutting tariffs on popular supermarket items including baked beans and chocolate.

Healey has also announced an increase in the National Minimum and Living Wages, both by 3.9%. There’s a lot to take in, so here are the key takeaways you need to know. Income and pensions One of the headline announcements is the increase in the National Living Wage, which will increase by 3.9% for both over-18s and over-21s. This will rise from £12.71 to £13.21 in a promise to help the ‘lowest paid workers’. For those aged 18 to 20, the minimum wage will rise to £11.27.

Here’s what’s in the red box (Picture: Leon Neal/Getty Images) Mr Healey said: ‘For 2.3 million of our lowest paid workers, I am increasing both the National Minimum Wage and the National Living Wage by 3.9%.’ Once National Insurance and 3% pension are counted, this would mean a minimum-wage worker would be around £1,150 better off per year. Healey also said self-employed fathers and partners would be eligible for paid parental leave for the first time.

Pensioners on low incomes will be shielded from income tax. A new tax allowance will be introduced for pensioners if increases to their payments take them over £12,570. Cost of living and bills To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Up Next Previous Page Next Page Healey has pledged £100 for those who live in homes covered by council tax bands A-D this winter. This is around 20,000,000 people.

The ‘direct household payment’ has been pledged in a bid to ease the effects of rising energy bills on wallets. He said the money would give Brits ‘breathing space’ as the cost of living continues to increase. The government will also extend a VAT cut through the winter and spring to July, taking £50 off the annual price cap. Healey confirmed the government is abolishing standing charges on gas bills for 23,000,000 homes. Fuel duty will be frozen for a 16th year in a row, and import tariffs will be removed on more than 100 popular supermarket items, including baked beans, chocolate and gherkins, meaning they will be cheaper at the tills.

Housing Healey in the House of Commons today The tax-free cash Isa limit will remain at £20,000, scrapping a plan to reduce it to £12,000. The Lifetime Isa penalty for those buying homes that cost more than £450,000 will end, with a new First Time Buyer Isa replacing it. The ‘Your First Home’ equity loan scheme will get £4,700,000,000 of government-backed lending. The rough sleeping programme will receive a further £432,000,000 to get people off the streets in England.

Defence and tech Healey has committed to spending 3% of GDP on defence by 2030. He said he would ‘fully fund’ Britain’s defence investment plan (Dip), Sir Keir Starmer’s plan that promised £15,000,000,000. However, he only committed £10,300,000,000 to it. He also pledged £10,000,000 of additional economic and military support to Ukraine, as well as half a billion in urgent military funding this winter. ‘The whole house, the whole country, is united for Ukraine.

Today we send a clear message to Moscow: Britain will stand with Ukraine for as long as it takes.’ The government has also pledged another £500,000,000 for AI safety and security. But a new ‘British datacentre covenant’ will mean centres must invest in the local area and make sure local water supplies are protected. Home affairs As part of his plan to devolve more power to mayors, the Chancellor announced plans for an extension of London’s Bakerloo Line.

Mayors will be allowed to retain income tax receipts generated locally and use finance schemes to fund infrastructure, with an initial £285,000,000 allocated to invest in projects in their areas. This means Sadiq Khan will be able to push ahead with projects including extending the line and expanding Euston station. Healey also outlined plans for more taxes on gambling to ‘improve Britain’s high streets’. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Up Next Previous Page Next Page This will free up money to give the high street businesses that ‘give character to our communities’ business rates relief.

Healey announced an increase in the threshold for small business rates relief for retail hospitality and leisure businesses from £12,000 to £18,000. This will take around 70,000 businesses out of paying business rates altogether. The Chancellor also pledged £15,000,000 to children’s charities, including Dolly Parton’s Imagination Library, which gives children free books up until the age of five. A £7,000,000 fund will be used for a feasibility study into a possible future bid to hold the Olympics and Paralympics in northern England.

Banks will pay an extra 3% on the bank surcharge for 15 months from January.