Pippa Crerar

Downing Street says the government *won't* be setting out a timeframe for reducing the benefits bill before the next election - despite what John Healey said. “The chancellor is completely in line with what the PM has said over the last few months that the welfare bill needs to come down and we are not setting an arbitrary target or timetable on that," the PM's spokesman said. "Both the PM and the chancellor have been crystal clear that the welfare bill needs to come down, and that we need to do that in a progressive and sustainable way and not through crude cuts which push people into hardship and puts pressure on the system elsewhere.”

John Healey has said there will be a reduction in the welfare bill before the next election with a “tough” approach to young people who do not accept support to get a job or training. The chancellor was repeatedly pressed on the issue in broadcast interviews after OBR docs suggested sickness and disability benefits would cost £100bn a year before the end of the decade. Treasury officials later disputed that Healey had been putting a timeline on reductions despite him answering a question about the next election with a commitment to bring down overall welfare bill. theguardian.com/uk-news/2026…

Thursday’s @guardian front page: £100 handout - but Healey warns of ‘global storms’ theguardian.com/uk-news/2026…

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🚨Our latest #PoliticsWeekly podcast on John Healey’s first budget and… How it kicks big tax and spending decisions down the road… Will barely shift the dial on cost of living pressures… And has left MPs asking: “Is it enough?”

Andy Burnham rules out having a general election in the next 12 months. (He previously just said there wouldn't be one soon). “I’m not thinking about my own party and its prospects," he tells reporters.

Healey confirms he'll wait until next year's spending review - currently pencilled in for autumn - to set out details of how UK meets Nato target of 3.5% GDP on defence by 2035. Crucially, this will include confirming an interim date of 3% by 2030. Chancellor says he'll now focus on "getting there in a fiscally sustainable way". He accuses the Tories of "hollowing out" the armed forces - saying that his son, an army reservist, "came back four years ago from early training to say they had no kit and they had no bullets to fire".

Healey confirms fiscal devolution to regional mayors - 100% of biz rates will be retained locally by 2030. Share of income tax receipts will go to mayors from 2028, when they'll also get powers to introduce tourist tax.

John Healey announces the surcharge on bank profits will rise - as first revealed by the Guardian. It will go up from 3% to 6% for 15 months. "This will be time limited to pay for immediate support for energy bills," he says.

Healey takes 70,000 more retail, hospitality and leisure firms out of business rates by lifting threshold for relief from £12k to £18k. It means half of them will pay no rates at all - and the rest will have rates frozen for next two years - paid for by raising taxes on gambling.

John Healey announces immediate cost of living fixes on energy bills including: * £100 paid to 20m households in council tax bands A to D to help with energy bills * VAT cut on electricity bills will be extended to July * gas standing charges scrapped - with electricity bills to follow

John Healey sets tone for his budget, pointing to the difficult global economic backdrop as result of Donald Trump's ongoing war in Iran - and its impact on inflation, fuel and energy bills at home. "Those are the storms we face. We cannot wish them away. We must choose the course we steer through them.," he tells MPs. "Fiscal discipline is my first commitment as chancellor. More than ever, it underwrites every promise this government makes to the British people." OBR forecasts a fall in headroom from £24bn to £15bn in 29/30 - but it rises to £22bn the following year. "That is what a buffer is for. Use it when you need it, rebuild it when you can."

Andy Burnham is asked about our story that the Treasury has already accounted for billions of pounds’ worth of tax revenue from Rosebank and so would be faced with a shortfall should it be rejected. PM reiterates that Rosebank is a quasi-judicial decision that will be taken by the energy secretary. But he adds: "You're right in pointing to the fact that use of our reserves can support and accelerate a clean energy future. And that very much was the logic behind the decision that the government announced on Jackdaw last week." #PMQs

A budget story for the ages 🥃

NEW: Standing charges on gas bills - the fixed daily levy added regardless of how much gas has been used - will be scrapped for around 23m homes, Treasury announces this morning. John Healey will ask Ofgem to deliver removal of charges in 2027 (or asap after) with fixed costs paid on unit rate instead, which govt says could save 60% of account-holding householders average of £45 off annual bill. Consumer champion @MartinSLewis, who has campaigned for the move, is currently in No 11 seeing the chancellor.

Wednesday’s @guardian front page: Healey targets cost of living crisis in budget for a ‘difficult moment’ theguardian.com/uk-news/2026…

EXCL: The giant Rosebank oilfield can be approved without breaching the UK’s emission targets, according to government insiders, in a boost to those in the cabinet who are pushing for it to be given the go-ahead. Sources also say the Treasury has already accounted for billions of pounds’ worth of tax revenue from Rosebank and so would be faced with a shortfall should it be rejected. By @kiranstacey & me theguardian.com/environment/…

Very nice to be shortlisted in the politics journalism and investigations categories (along with top colleagues @PaulLewis & @Direthoughts) at the British Journalism Awards. And in such esteemed company. Thank you @pressgazette! 🙏