Chancellor John Healey is scheduled to unveil his inaugural Budget this Wednesday. Unlike in previous years, there have been few indications regarding specific measures. His taxation and spending proposals will face rigorous scrutiny, particularly as government borrowing costs currently sit at historic highs. Can the government do anything else to help. But he doesn’t think he can afford to.
As the government prepares its fiscal plans, citizens ranging from low-income workers to higher earners have shared their financial pressures and expectations. For many, the primary concern remains the ongoing cost-of-living crisis.
Chloe, a 40-year-old mother who lost her husband four years ago, is raising their 16-year-old son on a full-time income of £41,000.
Although she benefits from subsidized rent through a housing association, she describes life as significantly more difficult since losing a second income. According to she’s very grateful the rent for her south London maisonette is subsidised through a housing association, but, Life was easier when she shared the bills. “Two incomes make a massive difference.
Her monthly gas and electricity bills have climbed to approximately £200, prompting her to strictly limit hot water usage and cut back on non-essential spending, such as trips to the cinema or M&S. She now restricts her weekly grocery budget to £40.
Despite her employment, Chloe finds fixed costs like her £200 council tax bill and essential medications for rheumatoid arthritis and other conditions increasingly difficult to manage. She is looking for the government to provide targeted relief for single-parent families, potentially through tax adjustments. Something on our tax bill perhaps.
Financial independence remains an elusive goal for 29-year-old Robert Portlock from Gateshead. Despite working at Newcastle Airport, he continues to live with his parents because moving out feels financially unviable. He estimates that rent for a small local flat would consume two-thirds of his take-home pay, leaving no room for other essentials like food, council tax, energy, and broadband. Chloe, Emily and Robert all spoke to about what they would like to see in the Budget. Has been speaking to people on a range of incomes on how they feel about their finances and what they would like to see in the Budget. You can get in touch via Your Voice, if there are issues you would like to see covered. Broadband, my car and some money to socialise, i’d need a TV licence.
Robert identifies his car as his most significant recurring expense. Maintaining the vehicle for his 32-mile daily commute costs him £750 per month, covering finance, fuel, insurance, and tax. He is calling on the Chancellor to reduce fuel duty and income tax, or alternatively, to raise the personal tax-free allowance from the current £12,570 to approximately £16,000.
Although the government recently introduced a scheme for first-time buyers with a 2.5% deposit, Robert remains skeptical. He believes that given the current economic climate, accumulating the necessary savings to enter the housing market is currently impossible.
