Overview
- Chancellor John Healey will set out his first Budget on October 28 and has told international audiences it will be 'tough' and focus on targeted, temporary support for those hit hardest.
- Sources reported Healey has ruled out extra borrowing, meaning any new measures must be paid for by higher taxes, cuts to other spending or using reduced fiscal headroom.
- Business groups have urged cuts to employer National Insurance and relief on business energy bills to boost hiring and investment, while unions and think‑tanks press for higher levies on banks to raise billions.
- Treasury reports and analysts say full capital gains tax equalisation is off the table and officials are instead weighing narrower measures such as a modest rise in the bank surcharge or targeted property levies.
- Rising gilt yields and IMF and independent forecasts that the UK’s tax burden will jump constrain Healey’s room for manoeuvre and mean the Budget’s handling of markets and fiscal credibility will shape the coming spending review.