Healey sets first Budget for 28 October amid fiscal pressures

Chancellor John Healey has confirmed that his first Budget will be delivered on Wednesday, 28 October, promising to "move money and power out of Westminster and into every postcode around Britain" Source: BBC; Source: The Guardian.

Ambition and policy blitz

Healey announced the date in a video message, saying the Budget would be built on fiscal discipline and give businesses and families stability Source: BBC. The Guardian reports that the announcement comes after Prime Minister Andy Burnham's first two weeks in power, which included a VAT cut on energy bills, lower business rates for pubs and live music venues, capped bus fares, and a pledge to give England's regional mayors a share of income tax Source: The Guardian.

Fiscal pressures

The Budget arrives amid rising borrowing costs on global financial markets, which the Guardian links to the "economic fallout from the Iran war" and UK national debt at its highest since the 1960s Source: The Guardian. City investors warn that Burnham has limited room for manoeuvre, though his choice of Healey as chancellor and the retention of Rachel Reeves's fiscal rules have eased some concerns Source: The Guardian. Healey insisted the government will meet its fiscal rules, while Burnham has ruled out increases to income tax, national insurance and VAT but has not ruled out tax rises to fund social care Source: The Guardian.

What's next

Labour must spell out funding for its cost-of-living support, devolution plans and a £15bn uplift in defence spending over five years Source: The Guardian. Healey said Labour was "working fast to restore hope" and "get on with the job" Source: BBC; Source: The Guardian.