UK pre-Budget: wage floor up, tariffs axed, carers' penalty scrapped

· Economy · United Kingdom

Chancellor of the Exchequer John Healey is preparing a Budget on October 28 that will raise the UK's national living wage by about 4%, axe tariffs on some staples such as marmalade and gherkins, shield low-income pensioners from income tax and scrap a controversial rule that punished unpaid carers with thousands of pounds in penalties. Healey said the package aims to give households "breathing space." The government is also on course to miss its target of spending 0.3% of national income on international aid by about £400 million, according to the Center for Global Development. Prime Minister Andy Burnham has separately said he wants the UK to rejoin the EU in his lifetime.

Why it matters：Britain's fiscal choices will shape household budgets and its global aid role while borrowing costs and growth stay fragile.

Key points

  • The Budget is due on October 28.
  • Tariffs will be cut on some everyday staples.
  • Aid spending is likely to fall about £400 million short of target.

Sources (original reporting)

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