Key facts
- Budget set for October 28.
- Healey aims to provide 'breathing space' for consumers and businesses.
- Fiscal rules set by Rachel Reeves will be maintained.
- Further energy support package expected.
- Additional support for Ukraine planned.
- Think tank estimates £36 billion needed to offset inflation impact.
UK Chancellor John Healey has indicated that his upcoming budget, scheduled for October 28, will aim to provide relief to consumers and businesses facing rising costs, while adhering to the government's fiscal rules. Healey stated his intention to offer "breathing space" and reinforce the nation's economic resilience. He is expected to announce further energy support measures and has hinted at additional aid for Ukraine. Healey emphasized his commitment to the spending plans previously set by his predecessor, Rachel Reeves, and instructed cabinet colleagues to fund new initiatives within existing budgets. The UK government has received praise from the IMF for its deficit reduction plan. A think tank has warned that approximately £36 billion in tax increases or welfare cuts may be necessary to offset inflation's impact on public services and meet defense spending commitments.