Chancellor John Healey has announced a £100 payment for about 20 million households in the four lowest council tax bands, A to D, as part of a package to bring down energy costs in his first budget, The Guardian reports. He said the measure would cost £2.6bn.
Healey also extended the VAT cut on electricity bills to next July, scrapped fuel duty rises planned by his predecessor Rachel Reeves, and said the gas standing charge would be abolished, possibly from next year.
He blamed the war involving Iran for a weaker outlook. The Office for Budget Responsibility has cut its growth forecast for next year to 1 per cent from 1.6 per cent, and higher inflation is expected to add £14bn to interest costs. Healey said he would still meet Labour's main fiscal rule, though with headroom reduced to £15bn.
Source: The Guardian
