Healey introduces comprehensive financial package to address rising energy costs

In her first budget, Chancellor Healey announced a significant reduction in energy bills for households and businesses, aiming to alleviate the burden on consumers amidst ongoing global economic uncertainty. The chancellor unveiled a £100 reduction per year for the standard rate of domestic electricity prices, equivalent to approximately 1.5% of the typical annual bill. Furthermore, businesses will benefit from reduced corporation tax rates starting at 15%, with a phased introduction over three years, designed to encourage investment and stimulate economic growth. To further support households struggling with debt, Healey proposed an increase in the personal allowance, providing £7 billion to lower income taxpayers and reducing income tax for 32 million working people. The chancellor also announced a new bank levy of 2.5%, targeting banks’ profits while ensuring financial institutions remain stable enough to lend in the market. Healey emphasized the need for bold action amid mounting global economic challenges, stating that his measures would help mitigate the impact on consumers and businesses alike. However, opposition parties expressed disappointment with the lack of substantial measures to address rising inflation and interest rates, arguing that Healey’s package did not go far enough.