Chancellor admits he can’t protect families from cost crisis as Budget to offer limited help on rising bills

JOHN Healey will admit he cannot protect families entirely from global cost of living shocks despite promising “breathing space” at today’s Budget. He will use his first financial package to offer Brits limited help with everyday costs funded by pushing up the tax burden to a peacetime record. But the Chancellor, who was out jogging on Tuesday morning, was accused of running away from the tough decisions on welfare spending and eye-watering debt. Mr Healey is expected to mount a raid on the banks, betting firms and online retailers while also hitting workers with sneaky “stealth” taxes. He is also expected to add 2p to the cost of a pint by increasing beer duty – despite campaigners begging for relief for struggling pubs which are closing down at a rate of one a day. Mr Healey will lower his £24billion financial buffer to foot cost of living help for families impacted by higher prices triggered by the Iran War. READ MORE ON THE BUDGET He will say he wants to give families “breathing space” with everyday costs, especially soaring food and energy bills. The Chancellor said: “We can’t stop these shocks that hit Britain, but we can make Britain more resilient when they do.” He added: “The world’s a highly uncertain place. “Conflicts abroad are pushing up energy prices, and the cost of living here at home – piling pressure on the families, on businesses, and on our public finances.” Most read in The Sun It will include a 16th consecutive fuel duty freeze and targeted help for vulnerable households, which will be funded by hiking taxes on banks. Mr Healey is prevented from doing anything substantial on bills by the inheritance left by his predecessor Rachel Reeves. He cannot raise significant taxes, he cannot borrow more, and he is unable to make serious welfare cuts without squaring Labour MPs. This fiscal prison created by the previous manifesto is why many people think Mr Burnham could call a general election sooner rather than later. Shocking figures show Britain’s debt mountain stands at more than £3trillion. A staggering £1 in every £13 is currently being spent on debt interest. Mr Healey has faced repeated demands to cut spending by targeting the welfare bill that is set to hit £400billion by the turn of the next decade. The Tories are calling on the Chancellor not to turn a blind eye to the major issues facing Britain – saying a “do-nothing” Budget will not make people feel more safe. Healey resigned from government earlier this year in protest at Labour’s failure to spend 3 per cent of GDP on the military. Shadow Treasury Minister Richard Fuller said: “Britain’s public finances are on a cliff edge. A ‘do-nothing’ Budget will not solve the problems staring us in the face: a spiraling welfare bill, a crippling tax burden, mounting debt and rising global threats. “When we see the Budget, we must ask: is it fair to take more and more money from hard-pressed working families just to spend it on more benefits? “Will more tax hikes and more borrowing make us better off? And is it right to leave our Armed Forces under-resourced? “Labour are running scared of the big decisions necessary to get our country back on track. Burnham must not bottle it.” Reform spokesman Robert Jenrick added: “John Healey can’t keep fiddling while the economy burns. “Borrowing costs are soaring, national debt has surpassed £3trillion, and the tax burden is at a record high. “We need a break-glass Budget that finally puts the economy back on track.” Shadow Chancellor Andrew Griffith tonight said warned Labour to stop “maxing out” the nation’s credit card. He said: “Our public finances are on a cliff edge. John Healey must use his Budget to take tough decisions, instead of continuing to kick the can down the road. “He must stop maxing out the nation’s credit card, tackle the out-of-control welfare bill and address rising global threats. “If Healey fudges defence spending rather than properly funding 3% by 2030 in his Budget, he must resign. “Defence is the first duty of any government, and we cannot leave our armed forces waiting any longer.” 'SUPERCHARGE THE CITY' By Ryan Sabey BRITAIN must supercharge the City with a second Big Bang moment rather than taxing the banks, a senior Tory says. Shadow Chancellor Andrew Griffith wants the financial services to thrive in the same vein as the deregulation drive forty years ago. His warning comes as major banks are expecting to be hit with higher levies in today’s Budget. The Tories have already called for ring-fencing rules to be scrapped forcing banks to separate their investment arms from retail operations. They also want to reduce the amount of cash banks must hold as a buffer relative to their assets. Speaking about the tax raid on banks, Mr Griffith said: “It will come at a cost to the ordinary people who end up paying the price. “If you raise taxes on jobs, you get fewer jobs. If you raise taxes on banks, you get more expensive mortgages, fewer loans to small businesses and less employment.”