The government of Prime Minister Andy Burnham presented its first budget, with Finance Minister Healey outlining measures focused on the cost-of-living crisis. The minimum wage will rise, 20 million households will receive a €120 energy subsidy this winter, fixed gas supply charges will be abolished and a fuel-tax discount will continue until summer 2027. Taxes on the banking and gambling industries will increase. The measures involve modest spending and tax rises.

The budget was presented as a cautious response to the financial-market concerns that followed Liz Truss’s 2022 mini-budget and the resulting rise in government borrowing costs. The government says the approach is intended to preserve room for later reforms, while a decision on how to finance a substantial increase in defence spending has been postponed until next year. Opposition parties criticised the lack of ambition, while the government said it was creating space for more radical reforms later.