Brief
Chancellor John Healey promises “breathing space” and fuel duty freeze in first budget
Healey’s autumn statement will freeze fuel duty at 52p per litre and introduce targeted support for households and businesses.
By Felo News Desk · Published
Chancellor John Healey announced that his first autumn statement, due on Wednesday, will provide "breathing space today" for households and businesses while setting out longer‑term measures to lower energy costs, the Independent reported.
What happened
In a video message released ahead of the budget, Healey said the government will cancel the planned January increase in fuel duty, keeping the levy at 52p per litre for the 16th consecutive year. He also said ministers will examine scrapping standing charges on gas bills and breaking the link between wholesale gas prices and electricity tariffs. The budget will include a permanent 55p tax‑free mileage allowance for the first 10,000 work miles and tariff cuts on foods such as chocolate, beans and gherkins, saving shoppers about £21 a year.
What the reports add
The Independent noted that the Chancellor is working within Labour’s fiscal rules set by predecessor Rachel Reeves, which require day‑to‑day spending to be financed by taxes rather than borrowing by 2029/30 and a fall in public‑debt ratio by that year. Prime Minister Andy Burnham has asked Healey and Energy Secretary Miatta Fahnbulleh to consider removing standing charges from gas bills.
What was said
Healey told the Independent, "Breathing space for today and fresh hope for the future. That's what today's Budget will deliver." He added, "The world’s a highly uncertain place. Conflicts abroad are pushing up energy prices, and the cost of living here at home – piling pressure on families, on businesses, and on our public finances." He also highlighted that Britain’s economy is showing resilience, with investment up and productivity growing, and that the UK recorded the joint fastest growth in the G7 in the first half of the year.
How it came about
The budget comes after a period of rising energy prices driven by international market turmoil linked to the Iran war. Labour’s fiscal framework, introduced by Rachel Reeves, limits the scope for large giveaways, prompting Healey to focus on targeted "everyday fixes" such as the mileage allowance and food‑tariff cuts. The Chancellor also plans to end the Carers’ Allowance cliff edge, replacing the penalty with a taper of £1 per extra pound earned.
Key facts
- Healey will freeze fuel duty at 52p per litre for the 16th year (independent.co.uk)
- A permanent 55p tax‑free mileage allowance will be introduced for the first 10,000 work miles (independent.co.uk)
- Tariffs on foods such as chocolate, beans and gherkins will be removed, saving households about £21 a year (independent.co.uk)
- The Carers’ Allowance cliff edge will be replaced by a taper of £1 per extra pound earned (independent.co.uk)
- Healey cited joint fastest G7 growth in the first half of the year as evidence of economic resilience (independent.co.uk)
Sources
- [1] independent.co.uk — originally reported as “Healey: ‘Breathing space’ Budget will move toward lowering energy costs for good”
