The UK proposed a package of measures to cushion households from another sharp rise in energy bills, while cutting £1 billion ($1.3 billion) from programs aimed at making homes cleaner and cheaper to heat.

Chancellor of the Exchequer John Healey unveiled a modest budget designed to ride out international headwinds. The question is whether his plans will sustain the optimism that his boss, Andy Burnham, has unleashed.

The UK proposed a package of measures to cushion households from another sharp rise in energy bills, while cutting £1 billion ($1.3 billion) from its flagship program to make homes more energy efficient.