London will raise taxes on banks to finance aid for low-income households and SMEs due to energy costs

The upcoming UK budget presentation by Chancellor John Healey is expected to introduce limited changes, primarily an increase in bank taxation. This measure aims to raise the corporate tax rate for profits exceeding £100 million, which has faced backlash from the banking sector. The budget will focus on social programs, including support for low-income households and small businesses, while reducing the government's fiscal buffer significantly. Healey's approach marks a departure from traditional economic growth strategies, reflecting a shift in political philosophy under Prime Minister Andy Burnham. The government is cautious about fiscal adjustments, aware of the political risks involved.