Budget offers households relief while raising questions over future growth

Chancellor John Healey’s first Budget promises some breathing space for households facing rising living costs, alongside measures intended to support businesses and investment. Around 20 million households will receive a £100 energy payment, while the removal of gas standing charges is expected to save 60% of households £45 a year. Tariffs have also been removed from more than 100 imported food products, and the minimum wage will rise by 3.9%. However, higher taxes on banks and uncertainty over future economic pressures leave questions about the Budget’s overall impact on growth.

Main budget announcements at a glance | Money News | Sky News

1.Explain how the removal of import tariffs could affect the UK market for imported food.

2. Discuss how the Budget’s measures to reduce household energy costs could affect consumption and aggregate demand in the UK.

3. Evaluate whether the measures announced in the Budget are likely to improve economic growth in the UK.