Key facts
- UK Prime Minister Andy Burnham's first budget prioritizes stability over radical reform.
- The budget includes temporary measures for energy bills and a £10 billion package for Ukraine.
- Major decisions on welfare reform and defense funding are deferred to future reviews.
- The UK's projected growth for 2027 was cut to 1% from 1.6%.
- Net taxes are set to rise by £7 billion annually.
- Defense spending is planned to reach 3% of GDP by 2030.
Prime Minister Andy Burnham's first budget, unveiled by Chancellor John Healey, has been characterized as a "breathing space" rather than a radical overhaul, aiming for stability amid economic headwinds. The 150-page document, titled "breathing space for today, fresh hope for the future," includes measures to help households with energy bills and a £10 billion defense package for Ukraine. Many of the tax tweaks are limited and technical, with key decisions on welfare reform and defense funding deferred to future reviews.
Healey stated the budget was designed to provide stability and direction, with further plans to be outlined in the prime minister's 10-year plan and a spending review. The UK's projected growth for 2027 was cut to 1% from 1.6%, and net taxes are set to rise by £7 billion annually. Defense spending is planned to reach 3% of GDP by 2030, with funding details to follow.