Analysis: Budget offered no real boost to disposable income

A new UK Budget offered limited relief to disposable income, with living standards expected to stagnate. The analysis notes muted industry enthusiasm, describing the Treasury’s approach as aiming to “bore the markets.” A rise in the business rates valuation threshold would remove about 70,000 small high-street businesses from paying rates, though the British Retail Consortium called it “smoke and mirrors,” arguing bills for 500,000 retail outlets will rise anyway. The government also raised Air Passenger Duty in line with RPI inflation from April 2028. It plans to expand the UK’s Carbon Border Adjustment Mechanism (CBAM) to refined products, including jet fuel from January 1, adding potential charges because 75% of UK jet fuel is imported. Meanwhile, the OBR forecasts real household disposable income per person will be just 1% higher in 2029-30 than in 2019.