Chancellor John Healey is expected to raid the banks and crack down on Amazon in tomorrow's Budget, as the government looks for ways to pay for cost of living support and a freeze on fuel duty. Welfare cuts, however, are not expected to feature in the package.
The Budget is set to focus on giving families and businesses what the government has described as 'breathing space' over the costs they face. Andy Burnham's government has framed the statement as a steady approach rather than a sweeping overhaul, and commentary ahead of the announcement has suggested it will be less dramatic than some expected.
Healey has been characterised by some commentators as favouring a 'Robin Hood' style Budget, drawing revenue from the banking sector and large corporations to support households. Political editor David Maddox has argued that the approach may not be as risk-free as the Chancellor suggests, and that a Budget described as steady and predictable could still prove less dull than the government has signalled. Commentary in the Express has taken a more pointed view, suggesting that Healey's conciliatory language should be read alongside what the measures actually do.
The fuel duty freeze is among the measures expected to be confirmed, offering relief at the pump for motorists at a time when household budgets remain under pressure. Support for living costs is the other central pillar, with the Treasury needing to identify revenue to cover the spending involved. The combination of a freeze and direct support means the Chancellor must find funding without resorting to the benefit reductions that have featured in earlier fiscal events.
Targeting Amazon is expected to form part of the revenue strategy, although details of how any clampdown would work have not been set out in the sources available. Banks are likely to face an increased contribution, a move that would be closely watched by the City given the sector's role in the wider economy and the scrutiny that bank taxation typically attracts from lenders and investors.
The government has ruled out welfare cuts as part of the Budget package, a point that separates this statement from previous fiscal events built around reductions in benefits. Taken together, the expected announcements point to a Budget that raises revenue from business and large companies while protecting household support. The precise figures, and the reaction from banks and retailers, will become clear once the Chancellor sets out the full package in the Commons.