Budget 2026 latest: Chancellor Healey set to cut food costs but add 2p to price of pint in first fiscal event

Andy Burnham has no mandate to reopen arguments on Brexit, Nigel Farage has said, as he hit out at the prime minister’s call for an “honest discussion” about a return to freedom of movement.

The prime minister’s comments have fuelled questions about the parameters around his vision for a deepening relationship with Brussels.

He has said he is not proposing any changes in this parliament that would move away from the red lines in Labour’s manifesto.

The Reform UK leader told BBC Radio 4’s Today programme: “Five months ago, Andy Burnham says … I’m not going to reopen these arguments.

“Two-and-a-half years ago, a Labour government got a massive majority in Parliament saying we will not be re-entering the single market, the customs union, or opening up a debate on the free movement of people.

“What I am saying is this: this prime minister has no mandate, and to hear that his officials are negotiating in Brussels already is really very, very poor indeed.”

Mr Burnham is meeting EU chiefs next month for talks with the bloc that continue his predecessor’s push for closer tie

The Tories have described Andy Burnham’s “everyday fixes” as an “insult to families hammered by Labour’s tax rises”.

Shadow chancellor Andrew Griffith said Labour is “not serious about the challenges facing our country” as he hit out at the measures unveiled by the chancellor ahead of the Budget.

“Rampant borrowing, soaring taxes and an utter inability to cut spending mean inflation has already wiped out the benefits of Burnham’s ‘everyday fixes’,” he said.

“Shoppers face rising costs at the till and families are struggling to make ends meet, but Burnham’s plan is cheaper gherkins. This is an insult to families hammered by Labour’s tax rises.”

The Budget is one of the biggest events in the UK’s political and economic calendar, when the chancellor sets out the government’s plans for taxation, public spending and the wider economy. Delivered in a speech to MPs in the House of Commons, the Budget outlines how the government intends to raise and spend money.

Mr Healey is expected to outline the proposals at approximately 12.30pm on Wednesday in the Commons, immediately after Andy Burnham has finished his weekly despatch box showdown with Kemi Badenoch at Prime Minister’s Questions.

The government is not “powerless” to the global economic pressures facing Britons, the business secretary has said.

Speaking to Sky News about the government’s “everyday fixes” to help people with the cost-of-living crisis, Jonathan Reynolds said: “Yes, the pressures are strong from Ukraine or what’s happening in Iran, between Iran and the US.

“But we’re not powerless. We can make changes as we’re announcing today that will make a difference to people’s lives, and we can have some confidence in the direction of the UK economy.”

The “everyday fixes” set to feature in Wednesday’s Budget include a higher tax-free mileage allowance and cutting tariffs on a a range of foods.

Labour has been accused of misleading the public by including billions of pounds in intelligence spending in the defence budget.

It is now facing a probe after former Tory defence secretary Sir Ben Wallace complained to the UK Statistics Authority.

He said the spending made it seem as if the government was on track to meet its Nato commitments, but the rules do not allow funding for security services to qualify.

In a letter to the watchdog, Sir Ben said: “As the world gets more unstable and our allies start spending real cash increases in their budgets, Britain seems to be falling behind.

“Telling the men and women of the Armed Forces and the public that they are spending more while in real terms day-to-day funding on our Armed Forces is being cut is an insult to them.

“It fools no one inside defence, our allies and our enemies.”

The price of a pint will rise by 2p when the chancellor hikes alcohol taxes on Wednesday.

John Healey is poised to announce an increase in alcohol duty at the Budget, which will be line with Retail Prices Index (RPI) inflation, which is set at 3.9 per cent.

It would add 2p to the duty on a pint, around 10p to 12p on a bottle of wine, and 35p to a bottle of 37.5 per cent gin.

Several industry groups had urged the chancellor to drop plans to increase alcohol taxes.

Miles Beale, chief executive of the Wine and Spirit Trade Association, said the government should be “supporting not squeezing” the British drinks sector.

“The Chancellor cannot control global fuel prices, but he can put the brakes on relentless and punishing alcohol tax increases, which have consistently failed to raise revenue. He needs to change the record – because it’s broken,” he said.

“Labour should not be continuing a failing tax regime that was designed and started by a Conservative government. Wine and spirit producers and retailers across the country are struggling to absorb the hefty duty increases and consumers can’t afford them. Another tax rise will simply mean that more businesses will fold.

“The WSTA continues to call for Government to recognise the immense pressure consumers, businesses, pubs and restaurants are under and put a stop to the tax raids.”

John Healey said: “Today’s everyday fixes are just a small part of what we are doing to give families a bit of breathing space.

“Conflict in the Middle East and Europe is hitting families here at home through higher everyday costs.

“We can’t control global events, but we can act where we can make a difference.”