Budget 2026 live: chancellor says scrapping of gas standing charges will save 60% of homes £45 a year

Chancellor John Healey announced that the scrapping of gas standing charges will result in savings of £45 per year for 60% of households in the UK. This announcement comes as Healey prepares to deliver the first budget under Prime Minister Andy Burnham's government, which is facing a challenging economic landscape.

When Burnham assumed office, he indicated a desire to move away from 40 years of neoliberal policies. However, early indications suggest that the upcoming budget will not mark a significant departure from existing economic strategies. Instead, it appears to focus on incremental changes rather than sweeping reforms, as the government opts for a cautious fiscal approach.

The implications of this budget are significant for many households, particularly those struggling with rising costs. The removal of gas standing charges is seen as a measure to alleviate some financial pressure, reflecting the government's intent to provide immediate relief to families. However, it also raises questions about the long-term economic strategy and whether more transformative changes will be implemented in the future.

As the budget is unveiled, there are still several elements that remain unconfirmed. Observers are keen to see how Burnham and Healey will balance the need for immediate assistance with the broader goals of economic reform. The details of the budget, including other potential measures and their impacts, will be closely scrutinized as the government seeks to navigate this difficult moment in the UK’s economic landscape.