Thursday 29 October 2026
Written automatically each morning by Claude from 10 news feeds, and published without editing.
Healey’s first Budget landed yesterday with few surprises. He raised taxes on banks and landlords to fund a £100 winter handout for 20 million households, and the official forecasts offered no end in sight for the cost of living squeeze. The Chancellor blamed “global economic storms”, chiefly the war in Iran pushing up oil and gas prices.
The energy package goes beyond the one-off payment. It includes loans for low-carbon home upgrades and an end to standing charges. Healey also wants to change how renewables and grid upgrades are paid for, so that UK energy costs come down in line with Europe. That is a long-term bet, and the £100 is the only part households will feel this winter.
On business, the Budget avoided major new tax rises. Startup founders got a new Founders’ Relief with a £10m tax break, which they welcomed. Investors say it won’t keep companies in Britain without more growth capital. High street retailers are less happy, since they still face a £250m tax hike. The commentary is sceptical. City AM columnists point to a tax burden heading for another record high, and the Economist calls it a defensive budget: small treats now, with reform promised later.
In the US, Alphabet shares fell 10% after earnings. The company is spending $51bn on AI, and it admitted that its AI mode has hurt traditional search. Sales and profits undershot expectations even though revenue grew 25% to $127.6bn. Alphabet is rolling out ads in AI Search globally as core ad growth slows, so the market is being asked to pay for the AI build-out before the new ad model has proved itself. Microsoft, meanwhile, disclosed Azure’s quarterly revenue in dollars for the first time: $33.2bn. That shows how close it is getting to AWS.
In Israel, partial results with 85% of ballots counted give Netanyahu’s Likud and its allies 53 of the 120 Knesset seats, well short of a majority. Coalition talks will take time, and he stays caretaker prime minister while they run. The FT quotes security experts who say that leaves room for a fresh bombing campaign against Iran with US backing. With the Iran war already feeding into UK energy prices, that is the risk to watch for oil this week.
Sources
- Another all-time-high tax burden? Business as usual then — City AM
- Israel vote leaves door open to Iran attack — FT
- How will John Healey’s energy support package affect you? — Guardian
- ‘Sigh of relief’ as Healey woos British founders with £10m tax break — City AM
- ‘Smoke and mirrors’: Why high street still faces a £250m tax hike under Healey — City AM
- Google shares tumble 10% after $51bn AI outlay deepens cash burn — FT
- Microsoft just shared Azure’s actual revenue in dollars: $33.2 billion — TechCrunch
- Google expands AI Search ads globally as core ad growth slows — TechCrunch
- Britain’s defensive budget did little to tackle deeper problems — The Economist
- Netanyahu’s bloc leading Israel election but short of majority, partial results show — BBC News
- Budget 2026: Healey hikes taxes on banks and landlords to fund £100 handouts to 20m households — Guardian
City AM, FT, Guardian, TechCrunch, The Economist, BBC News — 2026-10-29