Everything in this Budget, the chancellor says, is "fully funded".

"I have begun by making sure that people pay the tax they owe, when they owe it, and closing loopholes in our tax system," he says.

This includes giving the tax office funding "to improve compliance, and stronger powers to collect overdue tax from those who can clearly afford to pay, but ignore repeated contact".

Healey says he is also reforming the administration of self-assessment income tax, bringing those affected in line with the majority so they make "smaller, more regular payments instead of facing larger bills that are harder to pay".

The chancellor then lists off a few other changes that relate to corporate and property taxes.

Dharshini David
Deputy economics editor

The slowdown in growth the Office for Budget Responsibility (OBR) is predicting between this year and next is slightly more marked than many economists’ expectations.

The OBR expects expansion of 1.2% this year and 1% next. This underscores assumptions of a rocky few months ahead; not a recession but certainly a dent to growth as sustained higher energy prices bite.

Winter is coming, and it may not be cosy.

Beyond that (and the predictions presumably assume the war is not prolonged by much more), the forecasts underscore that there’s more to be done to boost growth back to the kind of average rates seen prior to the 2008 financial crisis.

What is the Office for Budget Responsibility(OBR)? The OBR is the UK’s official public finances watchdog. It releases forecasts for the economy and public finances twice a year, alongside the Autumn Budget and Spring Statement.

Healey says he wants businesses to invest, to recruit, to expand and is therefore taking action to support highstreets.

He announces an increase in the threshold for small business rate relief for retail hospitality and leisure businesses from £12,000 to £18,000.

This means 70,000 businesses will be taken out of paying business rates altogether, Healey adds.

He says this will be funded by raising taxes on gambling.

Healey is listing some of the smaller measures in the Budget which were already announced.

These include:

• Suspending tariffs on over 100 supermarket products
• The new Pension Tax Allowance: pensioners with income up to the value of the full new state pension will not pay income tax "in this Parliament"
• Carers Allowance, so people don’t lose their entire allowance when they earn over the threshold
• Minimum Wage: Increasing both the National Minimum Wage and the National Living Wage by 3.9% "for 2.3 million of our lowest paid workers"
• Paternity leave: Self-employed fathers and partners will be eligible for paid parental leave

The chancellor says he has "heard calls" for pay transparency on job adverts to close the gender pay gap.

He says the government will "act soon" to make sure women are "paid and promoted fairly".

"This Labour government is determined to make the economy work better for all families," he adds.

Image source, House of Commons

Healey has announced a further extension of the 5p fuel duty cut until next July.

The chancellor says the war in the Middle East is still driving high fuel prices and that's why the government is extending those tax cuts for motorists through the winter and spring.

Healey says those who need cars for work, he's increasing the higher mileage rate from 25p to 35p per mile and making permanent the increase to the standard mileage rate.

Inflation latest: The rate of UK inflation accelerated to 3.5% in September, the highest in almost a year. It has been pushed up by a sharp increase in petrol and diesel prices as global conflicts squeeze oil supplies.

Dearbail Jordan
Senior business and economics reporter

The cut to VAT on electricity bills from 5% to zero had been expected to end in March 2027. That will now be extended until July.

There had been some speculation the VAT cut would be made permanent.

The chancellor says this energy payment will help "take the pressure off in the coldest months and see people through to the spring".

It will be paid "directly into people's bank accounts", he says.

The Scottish, Welsh and Northern Ireland governments will receive a share of this funding, Healey says.

"I call on them to do the same and give people in all nations of the UK breathing space on their energy bills."

Image source, House of Commons

Twenty million households in council tax bands A-D will receive a £100 ‘household energy payment' this winter - paid directly into bank accounts for help with rising energy bills, Healey says.

This is costed as a £2.6bn scheme, Healey tells the Commons.

Image source, House of Commons

Chancellor John Healey says he will extend the VAT cut on electricity through the winter and spring to July.

This action will take "£50 off the annual price cap", he says.

Healey also references the removal of the gas standing charge announced earlier, which will come into effect "from next year".

The government will set out "similar reforms to follow" for electricity, he says.

Image source, House of Commons

Healey says the Bank of England have upgraded their forecasts for UK growth this year, with the IMF doing the same earlier this month.

The Office for Budget Responsibility (OBR), Healey says, has also today ungraded its forecast, to 1.2% growth this year.

Healey warns that "there are real challenges ahead", but says Britain has "beaten the forecasts this years" and believes it "can beat the forecasts again".

He says he knows that "people are under pressure" or feel that the country "isn't working for them", adding that his choice in this Budget is to give them "breathing space" and to reform energy.

In a slip of the tongue, Healey then says the energy secretary "opposed" the Jackdaw gas field, to jeers from opposition benches, before correcting himself to "approved".

He says the gas field will "boost energy security" and add £2.9bn to the UK economy.

It's a mixed picture for economic growthpublished at 12:49 GMT

12:49 GMT

Dearbail Jordan
Senior business and economics reporter

The OBR gives a mixed outlook on the strength of the UK's economy.

It expects GDP to expand by 1.2% this year - that's better than its outlook in March.

But next year, it forecasts 1%. That's a sharp drop from earlier expectations of 1.6% growth.

Still, the outlook looks heathier for 2028 onwards with other years' forecasts upgraded.

The government is spending £1 in every £13 it spends on debt interestpublished at 12:47 GMT

12:47 GMT

Dharshini David
Deputy economics editor

The chancellor says the movements in financial markets - caused by concerns about debt and inflation, here and elsewhere - have added an extra £14bn to the government’s borrowing costs this year.

That sum is equivalent to about a 2p increase in the basic rate of income tax.

Already, the government is spending £1 in every £13 it shells out in total on interest repayments on debt - money that could otherwise be spent on schools, roads - or tax cuts.

Hence the emphasis on getting debt down.

Image source, House of Commons

Healey continues by outlining how he is meeting the fiscal rules with this Budget.

"My choices in this Budget, means I've kept the Labour manifesto promise not to raise tax on working people", Healey adds.

Despite global challenges, Healey says, the Budget will bring Britain's finances "into the black" within three years.

Quoting the OBR forecast, Healey says borrowing will be down to 1.8% by 2030/31. On debt as a percentage of GDP, Healey says its forecast to fall by 81.7% in 2031/32.

Healey says the IMF pointed out that the UK now "stands out" as a country where action to reduce debt and deficit has been taken decisively.

"They project our UK deficit will be the lowest in the G7 by 2029."

What are Labour’s fiscal rules? The previous chancellor, Rachel Reeves, set out two rules that would dictate financial decisions.The new leadership has also vowed to follow these. These are:

• Not to borrow to fund day-to-day public spending by the end of this parliament
• To get government debt falling as a share of national income by the end of this parliament

Dearbail Jordan
Senior business and economics reporter

Healey confirms the government's financial headroom will fall from £24bn to £15bn, according to the Office for Budget Responsibility (OBR).

Financial markets reckon they can live with a smaller buffer of around that level.

Healey says what we face today are "global economic storms".

He adds that the OBR sets out that the war in the Middle East is a key driver affecting today's forecast.

We did not want this war and we rejected calls to jump into it, Healey says, adding it has driven up costs on families and businesses.

He says inflation has now risen, driven by higher oil and gas prices.

Healey says the impact is felt in public finances too and today's OBR forecast predicts we will spend £14bn more on debt interest this year.

Image source, House of Commons

The chancellor says in this budget he will set out the "new approach" this Labour government is taking "led by the vision of our new prime minister".

He says his economic plan will aim to "steer us through the global economic storms" of today and "chart a new course for Britain in the years ahead".

Healey pays tribute to his predecessor, Rachel Reeves - the UK's first female chancellor - who he says "brought fiscal discipline to this country" and took the decisions needed to "boost investment" and "cut NHS waiting lists".

Image source, House of Commons

Chancellor John Healey begins his Budget speech by calling it a Budget for the "working people of Britain, for British businesses big and small".

He says it is built on "fiscal discipline" and will give Britain some "breathing space".

Image source, House of Commons

Chancellor John Healey is on his feet in the House of Commons.

It's time for him to deliver the Budget.

This week's session of PMQs has concluded.

In a few moments Chancellor John Healey will stand up and deliver the Budget.

As a reminder, you can watch it all unfolding in the House of Commons at the top of the page.