Listen again · In Conversation
UK budget puts household costs and business support in focus
· 3:20 · Economy and work · With Maya and Omar
Omar is our columnist for the economy and work. Thank you for listening. Omar, Chancellor John Healey was due to present his first budget on Wednesday.
Transcript
Vocabulary in this episode
- living costs
Households were facing higher living costs, while businesses were also under pressure.
The money people need for everyday things, such as food, housing, and energy.
- living costs
Healey was expected to balance help with living costs against plans for economic growth and the government’s rules for public spending and borrowing.
The money people need for everyday things, such as food, housing, and energy.
- energy-price shock
The Guardian described an energy-price shock linked to the war in the Middle East.
A sudden rise in the cost of energy that causes difficulty for people or businesses.
- public spending
Healey was expected to balance help with living costs against plans for economic growth and the government’s rules for public spending and borrowing.
Money that the government spends on services and other public needs.
- financial distress
BTG, a UK firm that works with businesses facing financial trouble, counted 738,144 businesses in significant financial distress in the third quarter.
A serious situation where a person or business has money problems.
- financial distress
The number of bars and restaurants in financial distress rose by 5% to 18,866.
A serious situation where a business has money problems.
- financial distress
The number of food and drug retailers in financial distress rose by more than 7% to 19,269.
A serious situation where a business has money problems.
- pointed to
BTG chief executive Mark Fry pointed to rising employment costs, inflation, higher energy prices and expensive borrowing.
He named these things as reasons for the pressure on businesses.
- year on year
Food prices in its measure were up 2.9% year on year, compared with 2.5% in September.
Compared with the same period one year earlier.
- pull in different directions
Those aims can pull in different directions when public money is limited.
The aims can conflict, making it difficult to achieve them all at once.
- relief
So the central question is how to offer relief while also supporting the economy.
Help that reduces a problem or makes a difficult situation easier.
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Sources
- RechercheThe budget article describes the pressures behind Healey’s choices as including an energy-price shock linked to the Middle East war, rising expected household energy bills, and the need to balance cost-of-living support with growth and the fiscal rules.
- RechercheBTG counted 738,144 UK businesses in significant financial distress in the third quarter, 1.6% more than in the same quarter a year earlier. The count was the highest since BTG’s report began in 2004.
- The GuardianUK shop price inflation ‘highest since 2024’ as retailers struggle to limit price rises
- RechercheChancellor John Healey was due to deliver his first budget on Wednesday, setting out the government’s tax and spending plans. The reports framed the budget against pressure on household costs and businesses.