Budget time: what John Healey might announce on Wednesday

Energy and food costs

A typical annual energy bill is forecast to rise by £276 in January, marking its largest increase in four years. The government says Ofgem will seek to remove the relevant charges in 2027, or “as soon as possible after”.

Ministers also plan to scrap tariffs on 100 food items. Combined with suspensions introduced in June, the change is expected to save households up to £21 a year, or 40p a week.

Help for first-time buyers

The Budget is expected to provide more information about Prime Minister Andy Burnham’s Your First Home scheme for buyers in England. Eligibility is planned for first-time buyers with combined incomes of up to £110,000 outside London and £140,000 in the capital.

A minimum wage rise is also expected. The increase for workers aged 18 to 20 is set to be smaller than in each of the previous two years.

Tax plans and pensioners

Pensioners whose only income is the state pension are expected to be protected from income tax through a new personal allowance. Healey is due to explain how the exemption will work.

Economic outlook and forecasts

The UK has been the fastest-growing G7 country so far this year, and has performed better than expected amid energy price shocks linked to the US-Israel war with Iran. However, prices continue to rise faster than desired.

Inflation was 3.1% in the year to August, above the Bank of England’s 2% target and its highest level in five months. The Office for Budget Responsibility will publish forecasts covering the next five years when Healey sits down.