This Budget, as the Chancellor announced, was meant to offer “breathing space” and “hope” to businesses and individuals alike.
Announced shortly before the Budget was a number of changes to UK energy costs, with a headline grabbing move to abolish standing charges on gas bills by the end of 2027. This is expected to save the average billpayer £108 a year.
The Chancellor also promised to look into reforming the similar standing charge for electricity bills.
Alongside these measures, it was also confirmed that people living in homes in council tax bands A to D would receive a £100 Household Energy Payment to help with energy costs.
To help manufacturers with rising energy costs, the Government will launch the British Industrial Competitiveness Scheme from 1 April 2027. This will exempt certain energy-intensive businesses from the indirect costs of the Renewables Obligation, Feed in Tariffs and Capacity Market schemes.
Significant reforms to business rates were also confirmed to help struggling high street businesses.
Pubs, music venues and social clubs will get an additional 20 per cent relief on their business rates bill from 1 April 2027, carrying the full reduction to 35 per cent.
The Government will also increase its Small Business Rate Relief threshold from £12,000 to £18,000 so that a further 70,000 retail, hospitality and leisure businesses pay no business rates at all.
However, many of these businesses will also have to grapple with rising employment costs as a result of the National Living Wage and National Minimum Wage rates rising across the board by 3.9 per cent from 1 April 2027.
The 5p fuel duty cut will also remain in place to help businesses and workers with the sharp increases experienced at the pumps.