UK chancellor Healey raises taxes on banks and landlords to fund £100 winter payment for 20 million households
John Healey announced a £100 winter cash payment for 20 million English households, financed by higher taxes on banks, property income and savings, while warning of a grim outlook for household finances.
Chancellor John Healey unveiled a budget that includes a £100 winter cash payment for 20 million households in England, targeting council tax bands A-D. The £2.6 billion scheme will be funded by a doubled levy on banks’ profits, an increase in tax on income from property and savings, and higher taxes on gambling and vape retailers.
Healey said the payment aims to "take the pressure off in the coldest months, and see people through to the spring" and acknowledged the impact of the Middle-East conflict on energy bills. He also cancelled planned fuel tax rises and extended the VAT cut on electricity to next summer.
The Office for Budget Responsibility warned that household disposable income is expected to see "virtually no growth" and that inflation could rise to almost 4 %. Critics, including the Resolution Foundation and the New Economics Foundation, argued the support is poorly targeted and insufficient for the poorest families.
Industry observers noted that the additional bank levy, set at 6 % for 15 months, is smaller than some had feared, while higher taxes on rental income could be passed on to tenants.
Healey reaffirmed commitment to Labour’s fiscal rules, stating the government will balance day-to-day spending with tax revenues and rebuild the fiscal buffer to £22 billion by the end of the five-year forecast period.