Chancellor John Healey's first Budget on 28 October is reported to target a structural weakness in Britain's energy system, by decoupling gas and power prices and supporting entrepreneurs. The reported plan, set out ahead of the Budget, aims to cut bills over time rather than relying only on short-term support. Energy costs have become a central political issue, because wholesale gas prices still heavily influence electricity bills even when cheaper renewable power is available.

Cutting red tape for business

The Treasury has pre-trailed cuts to paperwork and red tape claimed to save businesses up to £800m, a figure presented as part of a wider effort to make it easier to start and grow a company. Ministers argue that lower administrative burdens free up time and money for investment, hiring and expansion. The test will be whether businesses feel the change in practice, and whether savings materialise without weakening protections that the rules were designed to provide.

Tax reliefs reportedly under discussion

A hike in capital gains tax has been reported as off the table, with possible expansion of reliefs discussed instead, including repeat-entrepreneur relief and relief for so-called unicorn companies. Business Asset Disposal relief currently gives a reduced rate on the first £1m of lifetime gains for qualifying disposals. None of these tax details has been confirmed as published Budget policy, and final decisions will only be known when the Chancellor delivers the Budget. Households and firms will be watching Wednesday's statement for the timetable, the costs and the expected effect on bills in the months ahead.

Sources: The Observer reports the planned energy reforms, the red-tape savings claim and the tax relief discussions ahead of the Budget.