Chancellor of the Exchequer John Healey announced a one-off payment of 100 pounds, or about $133, for 20 million lower- and middle-income households, along with an extension of the electricity VAT reduction and the abolition of a gas-bill charge. These measures, presented as immediate support for households and businesses, will be funded partly by raising the bank profits surcharge from 3% to 6% for 15 months starting in January and by increasing the machine games duty. The government forecasts economic growth of 1.2% in 2026, but inflation has reached 3.5% and is expected to remain high, prompting the Bank of England to raise interest rates. UK public debt has exceeded 3 trillion pounds for the first time, consuming 8% of government spending, while debt-servicing costs are projected to increase by 14 billion pounds this year.
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