UK chancellor John Healey delivers his first budget under Prime Minister Burnham

UK inflation

3.5 %, near one-year high

UK inflation has risen to a near one-year high of 3.5 per cent as the Iran war pushes up fuel prices, and the Bank of England is expected to raise rates soon.

UK debt has passed 3 trillion pounds for the first time, and servicing it takes 8 per cent of government spending, so the budget is expected to be low-key.

Expected

• Help with higher energy prices
• Higher surcharge on bank profits
• Higher taxes on the gambling sector

Healey has promised families and businesses some breathing space from the cost of living, and revenue is expected to come from banks and gambling.