Chancellor Xili will on Wednesday unveil a cautious budget designed to avoid
adding pressure on Prime Minister Burnham's new government. Measures expected
include higher taxes on banks, bookmakers and online marketplaces including
Amazon, a freeze on fuel duty for motorists, and targeted support for low-income
households facing high energy bills. The budget will propose devolving greater
tax-raising powers to regional mayors and provide over £20bn of additional
support to national financial institutions to drive investment in AI, defense
and green energy through the early 2030s. Xili said he hoped the package would
give the UK "some breathing space" amid inflation linked to the US-led war with
Iran. Options are constrained by sharply higher global and UK government
borrowing costs.
