Healey sets budget for late October, promising to ‘spread money and power’ around UK

📰 source: theguardian_business · 💼 business

uk chancellor john healey set the budget for 28 october, promising to 'spread money and power' out of westminster. the new labour government under andy burnham will stick to its fiscal rules while pushing ahead with tax and spending plans.

in his first two weeks in power, burnham announced a vat cut on energy bills, lower business rates for pubs, clubs and live music venues, bus fare caps, and a share of income tax for england's regional mayors. but global borrowing costs have risen sharply as the iran war stokes inflation and adds to financial pressures, with uk national debt at its highest since the 1960s. city investors warn burnham has limited room to manoeuvre, especially after he ruled out raising income tax, national insurance or vat.

choosing healey for chancellor over ed miliband and keeping rachel reeves's fiscal rules eased some concerns, but investors still see a delicate balancing act. burnham hasn't ruled out tax rises to fund social care or a wealth tax, and he must detail funding for cost of living support, devolution, and billions of pounds of defence spending tied to a £15bn increase over five years. healey said the budget will 'meet our fiscal rules' and give businesses and families stability to plan ahead.

why it matters: autumn budget on 28 october will test labour's fiscal discipline as markets watch for tax rises amid rising debt costs.

source: theguardian_business
sentiment: +0.10 · impact: 0.60