John Healey will stand up in the House of Commons on Wednesday to deliver his first Budget as Chancellor, with millions of households waiting to learn whether he can ease the pressure of rising prices without breaking the government's promises on tax and borrowing.

The statement is due at about 12:30, straight after Prime Minister's Questions. It will be the first Budget since Andy Burnham became prime minister in July, and it comes with inflation at 3.5% and petrol at its highest price since 2022.

Mr Healey has said the Budget will move “money and power out of Westminster, and into every postcode around Britain”, while still meeting the fiscal rules and keeping borrowing under control to help bring inflation down.

What has already been announced

In the days before the Budget, the Treasury set out five “everyday fixes” aimed at household costs.

The tax-free mileage rate of 55p a mile for the first 10,000 business miles will become permanent, and the rate above 10,000 miles will rise from 25p to 35p. The Treasury says about three million nurses, care workers, builders and others who use their own cars for work will benefit. Someone driving 6,000 business miles a year would save about £120 in tax, rising to as much as £300 for 15,000 miles.

Unpaid carers will no longer lose all of their Carer's Allowance for earning a penny over the weekly earnings limit, which is equal to 16 hours at the National Living Wage. Instead, £1 of support will be withdrawn for every extra £1 earned. Carers UK said it had called for the change for many years, and many carers had turned down work rather than risk losing the whole payment.

Two weeks of statutory parental pay, currently worth up to £194 a week, will be extended to more than 150,000 extra parents a year, including self-employed fathers and partners.

Import tariffs will be removed on more than 100 products, including marmalade, gherkins, garlic, chocolate wafers, boiled sweets and plant-based drinks, as well as kerosene heating oil and fertiliser. Ministers say that, together with earlier tariff cuts, families could save up to £21 a year on their food shopping. Hundreds more Post Office parcel drop boxes will also be installed, bringing the total to 1,000.

“Conflict in the Middle East and Europe is hitting families here at home through higher everyday costs,” Mr Healey said. “We can't control global events, but we can act where we can make a difference.”

What is expected

Most of the bigger decisions have not been confirmed, and nothing is certain until the Chancellor speaks. But several measures have been widely reported.

**Pensions:** The full new state pension is due to rise by 3.9%, or £489, to £13,036 a year from April under the triple lock. That would take it above the £12,570 personal allowance for the first time, so Mr Healey is expected to raise the tax-free allowance for low-income pensioners to match, sparing nearly a million people from paying income tax. The tax-free pension lump sum is reported to be safe.

**Energy bills:** Help with household energy costs is expected, with ministers said to be looking at scrapping gas standing charges. The New Economics Foundation has urged a £6bn package worth £290 a household, paid for by a windfall tax on banks.

**Fuel:** The BBC understands that fuel duty will be frozen again, with the 5p-a-litre cut first introduced in 2022 kept in place, and the rise planned for January cancelled.

**Banks:** A rise in the bank profits surcharge from 3% to 8% is reported to be under consideration. The TUC says that would raise £2.25bn a year, but City figures warn it would hurt investment. Mr Healey has already ruled out raising capital gains tax.

**Wages:** The National Living Wage for over-21s is expected to rise from £12.71 to £13.20 an hour, and the rate for 18 to 20-year-olds from £10.85 to about £11.27. That would leave younger workers further behind, despite Labour's pledge to scrap age bands.

**Defence:** Money is expected to fill a £4.7bn gap in the defence investment plan.

How much room does he have?

The Chancellor's choices are limited. Labour's 2024 manifesto ruled out rises in income tax, National Insurance and VAT, and the fiscal rules set by his predecessor, Rachel Reeves, limit how much he can borrow.

In March, the Office for Budget Responsibility put the government's “headroom” against those rules at around £24bn. The Institute for Fiscal Studies now puts it at about £20bn, and the Resolution Foundation thinks it may have halved.

What it means for Scotland

Much of the tax and spending in the Budget covers England only, but new money for services such as transport and housing normally brings extra funding for Scotland through the Barnett formula.

About £285m is reported to be going to English mayors and regional leaders. The Fraser of Allander Institute says that if this only changes how existing money is handed out, Scotland will get nothing extra. It also warns that as more English funding is passed through one-off local deals, it could become harder to work out what Scotland should receive, which could lead to disputes between Edinburgh and London.

Daily Alba will report the main announcements as the Chancellor delivers his statement on Wednesday.