A living plan of spending and resources
The new government is implementing a VAT cut on electricity bills and a 2 bus fare cap, funded by redirecting savings from a scrapped digital ID programme. Officials say the measures will reduce household costs, while ministers debate expanding the personal allowance. Updates indicate the plan is moving ahead despite questions about funding and timing.
Prime Minister Burnham has set out a cost‑of‑living agenda, unveiling measures to ease households’ bills and launch a Northern Downing Street outpost. The plan includes VAT relief on energy, a bus fare cap, and funding to end rough sleeping, with details on funding and timelines updated as the government navigates fiscal constraints.
Labour has signalled a review of Plan 2 student loans, including the earnings threshold and the interest rate, as debate grows over how much graduates repay.
The Bank of England has kept Bank Rate at 3.75% in a split MPC vote, citing upside risks from energy prices linked to the Middle East conflict. Inflation is expected to rise later this year, with forecasts showing a potential peak around 3.2% before easing back toward the 2% target.
Labour has set October 28 for its autumn budget, pledging fiscal discipline. Ministers say the plan will fund devolution, defence and growth while maintaining the party’s rules, even as borrowing costs rise and the Iran conflict strains public finances.
The new Prime Minister has launched a UK‑wide listening tour to hear people’s cost‑of‑living concerns. He has unveiled measures including VAT cuts on energy bills, a bus‑fare cap, and business‑rates relief for pubs and venues, while signalling further action in the budget and on high streets. He is travelling to communities to inform a long‑term plan.
Public borrowing in July stands at 1.8 billion, above forecasts, with four-month deficit at 56.7 billion. Tax receipts hit a record for July, but spending growth outpaced receipts, keeping debt near 3 trillion and GDP share at about 94%. Chancellor Healey to unveil October Budget amid fiscal discipline pledges.
The government has set out an initial £10bn from the 10-year SAHP to deliver 70,000 homes outside London, with around 60% for social rent. London funding will follow; the scheme forms part of a wider push to curb homelessness and boost council housing, though critics say it may not meet demand.
The government has framed its approach to the October budget around boosting growth while preserving fiscal discipline. Chancellors have signalled a commitment to devolution, welfare reform, and a tighter budget in response to high borrowing costs and global instability.
GDP has grown by 0.4% in July, led by services and computer programming. AI-related investment is helping boost sectors, though households face higher energy and living costs. Ministers face pressure as growth momentum tests fiscal room ahead of the Budget.
The ONS has reported that public sector net borrowing reached £18.3bn in August, above City and OBR forecasts, leaving year‑to‑date borrowing at £77.3bn — £8.1bn higher than the Office for Budget Responsibility expected. Higher inflation and rising debt interest have pushed interest payments to record August levels and narrowed Chancellor John Healey’s fiscal headroom before the 28 October Budget.
Labour has unveiled a revived Help-to-Buy style scheme called Your First Home. The plan offers a 20% government-backed equity loan for first-time buyers with a 2.5% deposit, backed by a 75% mortgage. It targets lower-income buyers and imposes caps on income and property values. Details will be set out in the forthcoming Budget; registration opens later this year.
Opposition lawmakers have failed to muster enough votes to topple the government as debates over a 2027 budget deficit of 386 billion koruna continue. Economists say the deficit would be the second-largest in Czech history, while the government defends spending as necessary for health, pensions, and public salaries.