The Money Situation
Real talk: Chancellor John Healey is dropping the Labour government’s first Budget on October 28, and the vibes are highkey stressful. With government borrowing costs at "historic highs," the Chancellor is facing a major balancing act. He has to fund defense spending and support households while sticking to strict manifesto promises not to hike income tax, National Insurance, or VAT.
Potential Tax Moves
Bank bosses are bracing for impact—there is strong speculation Healey will hike taxes on the banking sector, possibly by bumping up the 3% profit surcharge or messing with the bank levy. Meanwhile, if you’ve been eyeing the property market, the "Your First Home" scheme is back in the spotlight. The plan would let first-time buyers snag a new-build with just a 2.5% deposit, backed by a 20% loan.
Also, keep an eye on Capital Gains Tax (CGT). While there’s talk of changes, reports suggest the Chancellor has already axed plans to hike those rates to match income tax levels. For the high street, retail giants like Amazon and eBay might soon be on the hook for collecting tax for third-party traders, with that cash likely going toward cutting business rates for local shops.
The Energy Crunch
Inflation is sitting at 3.1%, and your energy bills are expected to jump by about £276 this January. It is giving major cost-of-living anxiety. While fuel duty has been frozen, we don’t know if that extension will last past the end of the year. However, there’s a rumor that targeted energy bill support is coming for households on specific benefits.
Why it matters
Whether you’re a renter trying to save for a deposit or just worried about your heating bill this winter, the Budget is where the rubber meets the road. With the Office for Budget Responsibility (OBR) forecasting a shrinking buffer—or "headroom"—for government spending, how Healey moves his numbers will dictate the economic landscape for the next year. Watch the live stream on October 28 to see if your side hustle or savings account takes a W or an L.
