THE government is expected to freeze fuel duty, introduce energy bill support for lower-income households and increase a tax on banks — but will these changes be beneficial for Cornwall?

The Chancellor of the Exchequer John Healey is promising “breathing space” for households and businesses as he is due to set out tax and spending plans for the economy in his first Budget this afternoon (October 28).

He has said he will be using his first autumn statement as Chancellor to cut energy bills “for good.” He has also suggested he will look into removing the fixed daily fees on electricity as well.

The fixed costs will be added to the price customers pay for each unit of gas they use, with the government estimating around 60 per cent of households will save an average of £45 a year.

Under the current energy price cap, households pay an average of £108 a year in gas standing charges, regardless of how much they use.

Energy regulator Ofgem is expected to introduce the changes in 2027, or “as soon as possible afterwards”.

Prime Minister Andy Burnham said: “Abolishing gas standing charges is about basic fairness and giving people more control over their bills.

“I am determined to reform our broken energy market, so it better serves the public interest.”

Among the other measures expected to be announced today is a possible tax rise for banks, as the government looks to raise additional revenue.

Mr Healey could also introduce targeted support for household energy bills, allegedly worth more than £1-billion — but this will reportedly be aimed mainly at lower-income households.

Welcome news for those who drive for a living, an extension of the fuel duty freeze is also expected, which would prevent planned increases in the tax on petrol and diesel.

Other measures to be announced include the minimum wage rate for workers aged 21 and over potentially rising from £12.71 to around £13.20 an hour, and measures to protect pensioners who rely solely on the state pension from paying income tax, despite the annual payment rising above the current tax-free allowance.

But what does this mean for Cornwall?

There are fears among tourism and hospitality leaders that any further taxation or financial pressures in the upcoming Budget would "hinder growth" for Cornwall’s tourism sector.

Katie Warren, the chair of the Cornwall Visitors Alliance, has said the Cornish tourism and hospitality sector will be watching "with bated breath".

She said: “Tourism is woven into the fabric of Cornwall's economy and communities, supporting thousands of businesses and livelihoods.”

Mr Healey will make his Budget announcement at around 12.30pm, after Prime Minister’s Questions. The speech usually lasts around an hour.