# How the Budget affects your finances
Changes announced by Chancellor John Healey in his first Budget will affect your finances directly.
The Chancellor's Budget, delivered on Tuesday, sets out a series of measures that will change how people manage their money. While the full details are still being worked through, several key changes are expected to have a direct impact on household budgets.
Tax changes ahead of next year
One of the most significant announcements is a planned increase in the main income tax threshold. This means more people will not have to pay income tax at all, freeing up money for other spending. The change is set to take effect from next year, giving households immediate relief.
Help with energy costs
The Chancellor also announced additional support for households struggling with energy bills. A new payment is being introduced to help cover the cost of heating and electricity during the winter months. The scheme is designed to protect vulnerable families from fuel poverty.
Support for small businesses
Small businesses are also receiving attention through the Budget. A new grant programme has been announced to help companies cover their operating costs while they wait for government support schemes to be fully confirmed. This comes as many businesses face uncertainty about the economic outlook.
What this means for you
For most households, the immediate effect will be lower tax bills and some extra cash in pocket. For businesses, particularly those that rely on government contracts, the new grants could provide crucial breathing room.
Chancellor John Healey said the Budget was designed to "put people first" and provide practical support where it is needed most.
The changes will roll out gradually over the coming months, allowing individuals and businesses to adjust to the new measures.
