Chancellor John Healey has unveiled his first Autumn Budget in the House of Commons.

This is also the first budget under Andy Burnham.

Healey said that everything in the budget is fully funded.

The Bank of England, IMG and Office for Budget Responsibility (OBR) have all upgraded their forecasts for UK growth this year, with the OBR forecasting 1.2 per cent growth.

The VAT cut on electricity will be extended through the winter and spring until July next year. This will take £50 off the annual price cap. The government had also previously announced the removal of the gas standing charge which will come into effect next year.

Twenty million households in council tax bands A-D will receive a £100 ‘household energy payment' this winter to help with rising bills. This will be paid directly into bank accounts.

The 5p fuel duty cut has also been expanded until July next year, with Healey citing the war in the Middle East as a driver of high fuel prices.

By the end of the decade, the Government plans for 100 per cent of business rates to be retained locally. From next year, 20 per cent of business rates revenue will go to mayors.

From 2028, a share of income tax will also go to Mayors.

Some Mayors and other local authorities will also get more powers to introduce overnight visitor levies.

Healey also revisited previously announced plans that everyone sleeping rough will be offered a route off the streets this winter. He confirmed a further £430m to keep that offer open for the rest of this parliament.

Mayor of London, Sadiq Khan, said: “Today’s Budget is a really positive and significant day for London. At its heart is a new devolution revolution.

“After lobbying on the issue for many years, I’m delighted that the Government will help us to bring cross-channel rail services to Stratford International – making this station truly international for the first time. It will open up huge opportunities for jobs, investment and tourism. 

“The Government have also taken significant steps to devolve transformational new powers and funding to the capital, alongside other communities around the country. 

“Working with Number 10 North we’re delivering the largest devolution of powers to London seen in a generation.

“By giving London the ability to keep more of the money we raise, we can invest billions of pounds more in our future, helping to finally unlock transformational infrastructure projects such as the West London Orbital, the Bakerloo Line Extension and the Euston knowledge quarter project, supporting tens of thousands of new homes, jobs and economic growth. 

“Proper devolution is something I have been calling for years, and this Government gets the scale of the ambition needed where previous Governments have failed. 

“Action to address the cost of living and the cost of doing business is very welcome. Support for rising energy bills will be vital for many Londoners as the conflict in the Middle East continues to send shockwaves through the global economy.

“Alongside major new investment to tackle rough sleeping, to build more affordable homes and support for young Londoners to access vital skills training and employment opportunities, this Budget shows a real commitment to building a fairer, safer, greener and more prosperous London for everyone.”
 

Cllr Eamonn O’Brien, Chair of the Local Government Association, which represents councils, said: “Extra funding to tackle rough sleeping and for social housing is positive. However, no overall funding increase for local government means councils will continue to struggle to meet demand and provide services to our communities.

“Government recognises that councils are central to achieving good growth and rewiring the state. These ambitions cannot be achieved if council finances remain fragile and reliant on emergency bailout agreements.

“The full value of local government will only be unleashed if both local and strategic authorities are empowered and financially sustainable. Plans for real fiscal devolution must ensure investment decisions can better meet local needs.

“We need a new deal for local government. Genuine devolution must go beyond mayors and strategic authorities to empower councils themselves. Local authorities know their communities best, and only with adequate funding, meaningful powers and a review of statutory obligations can they have the freedom to focus on local priorities and deliver for their residents.”