Arabic version: أول موازنة لهيلي تُقدَّم يوم الأربعاء

According to BBC News, Chancellor John Healey will deliver Labour’s tax and spending plans in his first Budget at around 12:30 on Wednesday. The speech is expected to last about an hour and will be broadcast live on BBC iPlayer and the BBC News website.

Healey and Prime Minister Andy Burnham are seeking to give households “breathing space” as the cost of living remains high. The government has announced plans to remove standing charges from household gas bills for about 23 million homes, with Ofgem aiming to implement the change in 2027 or as soon as possible afterwards.

The Treasury estimates that three-fifths of households would save an average of £45 a year, although higher gas unit costs would offset the change and could leave heavier users paying more. The government also plans to remove tariffs on 100 food items, which it says could save households up to £21 a year when combined with tariff suspensions introduced in June.

The BBC understands fuel duty will remain frozen and the 5p cut introduced in 2022 will stay in place. The Budget is also expected to provide details of the Your First Home scheme, under which eligible first-time buyers in England could buy a new-build property with a 2.5% deposit and receive a loan worth 20% of the home’s value.

A minimum-wage increase is due to be announced, while pensioners receiving only the state pension are expected to be protected from income tax through a new personal allowance. After the speech, the Office for Budget Responsibility will publish five-year economic forecasts, before MPs debate the measures for three days.