The Chancellor of the Exchequer, John Healey, has delivered the Autumn Budget today, 28 October.
Healey announced “a Budget for the working people” designed to create “immediate breathing space” regarding the cost-of-living.
The Budget set out to prioritise “cheaper energy” and “cleaner power,” with an “unshaken commitment” to Net-Zero by 2050.
The Chancellor promised “immediate action” for businesses and households.
This includes a £100 payment paid “directly into bank accounts” to support energy costs for all households within Council Tax brackets A to D.
Despite receiving matched funding, it is not clear whether the Scottish Government will use the funding to match the payments being made in England, nor whether students, who typically do not pay Council Tax, will receive the payment.
Healey also announced a 3.9 per cent increase in the National Minimum Wage and the National Living Wage. This means that from April 2027, 18 to 20-year-olds will be paid a minimum of £11.27 per hour, and over 21-year-olds will be paid a minimum of £13.20.
This was met with the removal of import taxes on over 100 food products, expected to save the average household £21 per year.
Regarding the University of Edinburgh, Healey announced £18m in funding for a UK Advanced Chip Design Academy to “strengthen national security and AI hardware capabilities.”
On housing, Healey highlighted that “two in five young people are spending more than a third of their income on rent.”
Healey confirmed the “Your First Home” scheme, whereby first-time buyers can get on the property ladder with a 2.5 per cent deposit on new-build properties in England. This scheme is not applicable in Scotland.
However, he also announced a “First-Time Buyers ISA,” set to replace the “Lifetime ISA” in 2029. This will include reducing the penalty on withdrawal from the ‘Lifetime ISA.’
On supporting the High Street, Healey stated that costs are set to be covered by increasing taxes on gambling machines from 20 to 25 per cent, and vape shops and adult gaming centres will be exempt from business rates reliefs.
The Chancellor did not mention Student Loans, with the Leader of the Opposition, Kemi Badenoch, stating: “When was the last time any of them spoke to a graduate looking for a job?”
Despite this, Healey had stated in the budget that the government is awaiting Alan Milburn’s Review on NEETs — young people aged 16 to 24 “Not in Education, Employment, or Training.”
Healey paid tribute to ex-Chancellor of the Exchequer, Rachel Reeves, as Britain’s first woman in the role, promising that the government will “act soon” on the gender pay gap.
Photo by Martine Mussies on Unsplash
