John Healey pledges cost-of-living help before Budget as major decisions loom
The chancellor says he will ease pressure on households while keeping to Labour’s fiscal rules. Major tax and spending choices are expected to wait until next year.
UK Chancellor John Healey said ahead of his 28 October Budget in the House of Commons that he would seek to ease cost-of-living pressures while keeping to Labour’s fiscal rules. The Guardian reported on 27 October that the Budget was expected to be modest, with major tax and spending decisions deferred until next year.
In a video released before the Budget, Healey described the moment as difficult. ‘Conflicts abroad are pushing up energy prices, and the cost of living here at home,’ he said, adding that the pressure was falling on families, businesses and public finances. He said the government would act ‘responsibly’ as it sought to make Britain more resilient to global shocks.
What households could see in the Budget
The Guardian reported that Healey was expected to offer temporary help to poorer families before a steep rise in typical energy bills in January. It also reported that he was likely to pledge energy-market reforms intended to lower bills over a longer period. Neither expectation establishes what the Budget will contain.
The Daily Mirror, in an editorial appeal to the chancellor, cited a prediction that energy bills could rise by 27% to nearly £2,200 in January. It urged targeted assistance, including a possible increase in the Warm Home Discount. That figure is a forecast, and the suggested assistance is the Mirror’s proposal rather than an announced government measure.
A further question is how any change to gas bills would distribute costs. The Guardian reported that Prime Minister Andy Burnham had told MPs he wanted to abolish the gas standing charge, a fixed daily levy. Under the change described by the paper, people who use less gas would pay less, while higher users would bear the shifted cost. The proposal has not been confirmed as a Budget measure.
Why the chancellor faces limited room to spend
The Guardian attributed Healey’s limited scope for large giveaways to stretched public finances, compounded by international market turmoil linked to the Iran conflict. Healey said the Budget was about getting through the immediate difficulty while putting Britain on ‘a better future path’. The newspaper reported that important tax and spending choices were expected to be put off until next year.
The Standard reported that Healey was scheduled to deliver his statement shortly after midday on 28 October, following Prime Minister’s Questions. It said no further tax changes had been confirmed; inheritance-tax reform and a possible land value tax were among the ideas under discussion, with no indication that either would appear in the statement.
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Sources and context
- Chancellor targets cost of living crisis in budget for a ‘difficult moment’The Guardian
- 'Dear Chancellor, deliver a breathing space Budget with fairness at its heart'Daily Mirror
- When will Chancellor John Healey announce the 2026 Budget?The Standard
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.