Great Britain: Burnham's government presents budget

Burnham Government Budget A little here, a little there As of: 10/28/2026 • 7:20 p.m

The presentation of the budget was the first acid test for British Prime Minister Burnham. The British' expectations are high. The government is primarily focusing on small measures that people should feel immediately.

This morning in the British Parliament, British Finance Minister John Healy used a phrase almost like a mantra to describe the budget presented: "More room to breathe."

Andy Burnham's government wants to relieve people's burdens. The Prime Minister has repeatedly announced this since taking office almost exactly a hundred days ago. Growth, relief in the cost of living and economic recovery: these were the big promises. Now John Healy has backed up these promises with numbers.

"This Budget is for working people in Britain, for businesses small and large - at a time when global uncertainties around the world are affecting people here, at home," he said.

Healy presents his budget as a major achievement, a great moment for the British people. There is more money for defense, an additional ten billion for support for Ukraine, 40 billion for housing construction. All measures that could be foreseen and to which Burnham's government has repeatedly committed itself.

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Overall, however, the budget consists of small announcements and priorities. For example, there is the announced relief in the supermarket. The import tariffs for almost a hundred products that are particularly popular with the British are to be eliminated. The conservatives joked that cheaper cucumbers certainly didn't relieve people's burdens.

Party leader Kemi Badenoch repeated the accusation in Parliament: "Most Brits will think to themselves today: That's it now? The Prime Minister has promised to reverse 40 years of neoliberalism - instead, pickles will be four pence cheaper."

A large part of the budget refers to the promise to fundamentally overhaul the energy system in Great Britain, as Burnham announced at his party conference a few weeks ago. Grid expansion should go back into state hands, and energy projects should be checked before approval to see whether they relieve the burden on people. But all of that is a thing of the future. In the current budget, Healy promises that no VAT will be paid on electricity until next July.

Then it gets detailed: “This winter, 20 million households in certain British regions will receive a £100 energy allowance,” says Healy. In addition, the basic fee that the British pay for gas supply should be eliminated. Companies should also benefit: Many companies currently pay no trade tax, the maximum rate will now be increased so that even more can benefit from it. Healy wants to pay for all of this, for example, with a tax increase for the banks, higher trade taxes for arcades or vape shops.

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And in keeping with Burnham's announced decentralization, local authorities should receive more money in order to become more independent from London. From next year, 20 percent of trade tax revenue will go to the municipalities, and from 2028 part of the income tax will go to the municipalities, says Healey.

There are countless small measures like this that Healy announced in his speech, which lasted just over an hour.

The opposition is not very enthusiastic: Social benefits are becoming billions of pounds more expensive because the government has completely committed itself to social welfare, says Kemi Badenoch. "We pay too much, we incur too much debt, pay too many taxes, and we are literally drowning in a huge social budget. And this is his answer?" she asks. "It's not enough. This isn't good enough, not strong enough and not brave enough."

With his budget, John Healy is continuing what Andy Burnham started almost a hundred days ago: small measures that people immediately feel. The big plan for permanently reducing the cost of living or improving the economy is still missing.

This topic in the program: tagesschau.de | Labor government presents new budget | Oct 28, 2026 | 6:44 p.m