Overview
- Chancellor John Healey will deliver his first Budget on October 28 and is preparing limited, targeted measures because gilt yields and rising inflation have sharply cut the government’s fiscal headroom.
- Healey has praised banks as vital to the economy but has not ruled out raising the bank levy, while reports say he has rejected equalising capital gains tax with income tax.
- Business groups such as the CBI are pushing for employer National Insurance relief and cuts to business energy costs to spur hiring, with a specific call to raise the employer NI threshold by about £1,000.
- Unions and left‑leaning think tanks want a much higher bank surcharge to fund cost‑of‑living support, while property and finance groups warn an estimated £1 billion rise in business rates on high‑value London offices would damage investment.
- Final Budget choices will be shaped by the OBR’s pre‑Budget assessment and short‑term market reaction, leaving Healey to balance political promises, fiscal rules and the immediate need to help households facing rising energy bills.