LONDON, Oct. 28 (Xinhua) -- British Chancellor of the Exchequer John Healey on Wednesday unveiled the Budget 2026, aiming to give families and firms breathing space from rising costs through supporting measures in the fields including energy, income, housing, spending and business tax.
The government will provide 100 pounds (about 133 U.S. dollars) household energy payment for up to 20 million qualified households in England, with funding for similar support provided to the rest of the UK. Meanwhile, it will extend the value-added-tax cut on electricity bills to July 1, 2027, according to the budget.
The budget supports drivers by extending the cut to fuel duty for a further six months, while cutting prices at local, lower-powered public chargers to reduce costs for electric vehicle drivers who rely on them.
Earlier Wednesday, the Chancellor also abolished standing charges on household gas bills, a fixed daily fee added on top of a household gas bill regardless of how much gas has been used.
In response to the rising inflation, the government will remove tariffs from more than 100 products to lower import costs for everyday family spending such as baked beans and chocolate, and cut tariffs on kerosene and fertilizer to support households and farmers facing higher costs.
At the same time, the budget plans to increase the National Living Wage by 3.9 percent per hour on April 1, 2027.
Moreover, the budget provides a further 1.5 billion pounds (about 2 billion dollars) in funding for social and affordable housing, taking total capital investment over the next 10 years above 40 billion pounds (about 53 billion dollars).
On the front of business support, the budget backs England's high streets with a package that means all retail, hospitality and leisure properties in England will see their business rates either frozen in real terms, reduced or cut to zero.
On top of the extra 20 percent business rates cut for pubs and all but the largest live music venues, announced in July, this package will take around 70,000 more retail, hospitality and leisure businesses out of business rates by increasing the Small Business Rates Relief threshold.
To deal with the energy price hikes faced by enterprises, measures will be taken to support over 10,000 eligible businesses in electricity intensive Industrial Strategy sectors and the foundational sectors in their supply chains to cut electricity bills by up to 25 percent and bring electricity costs closer to other economies in Europe from April 2027.
However, due to the limited momentum of change brought by the budget, analysts believe there should be more ambitious plans from the government to increase living standard and boost business investment in the country.
"For this budget, the outcome for UK residents is really one in which Healey tinkers around the edges," John Bryson, a professor at the University of Birmingham, told Xinhua.
Since forecasts anticipate energy bills will rise again by as much as 27 percent in January, the government also needs to be thinking more long-term about how to protect households from rising energy bills not just in the short term but over a sustained period, said Caitlin Robinson, a professor at the University of Bristol.
This will require more ambitious investment in energy efficiency, low carbon heating and renewable electricity, Robinson added.
"This was a 'steady as you go' budget, sending the right signals to business, but lacking big calls that would really shift the economic dial," Shevaun Haviland, director general of the British Chambers of Commerce, said.
"Our key tests for the Chancellor were whether his plans would boost growth and ease costs for business. Many firms will have been hoping for a greater impact," she noted.
Tina McKenzie, national chair of the Federation of Small Businesses, hoped the increase in Small Business Rates Relief should have covered more businesses, such as manufacturers, small exporters, nurseries and office-based businesses which are not just on the high streets.
Eamonn O'Brien, chair of the Local Government Association, argued that no overall funding increase for local government means councils will continue to struggle to meet demand and provide services to their communities.
