Chancellor John Healey has confirmed that his first Budget will be delivered on Wednesday, 28 October. In a video statement, Healey emphasized that the upcoming financial plan aims to shift resources and authority away from Westminster to communities across the country, while adhering to strict fiscal rules to provide stability for families and businesses.
Prime Minister Andy Burnham has committed his administration to maintaining the fiscal framework established by his predecessor, Rachel Reeves, which includes a goal to balance day-to-day spending with tax revenue by the end of the decade. Furthermore, the government intends to uphold 2024 manifesto pledges against raising income tax, VAT, or national insurance contributions.
The government faces pressure to balance these commitments with new policy priorities, such as increased spending on social care and defense. While Healey previously advocated for raising defense spending to 3% of GDP by 2030, Defence Secretary Wes Streeting has declined to confirm that specific target, noting that any new spending commitments must be accompanied by a clear funding strategy.
As part of a broader effort to decentralize power, Prime Minister Burnham announced that regional mayors in England will receive a share of income tax revenue to support local priorities. The government clarified that these reforms will not alter income tax rates.
The announcement drew criticism from the opposition, with Shadow Chancellor Sir Mel Stride expressing concern over the delay in detailing the government's fiscal plans. Meanwhile, analysts suggest the Chancellor faces a challenging economic environment, noting that a previously established £22bn buffer may have been impacted by inflation linked to the conflict in Iran.
Source: BBC News
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