Stories

Mon, 26 Oct 2026

Mon, 26 Oct 2026 Healey's Budget needs to sustain the stronger economy through gathering clouds

The economic is positive now but come January things could become trickier for the Labour government
1. Resilient economy: Healey is expected to highlight the strength and resilience of the UK economy, despite the challenges posed by the energy crisis. 2. Sustaining growth: The Chancellor's goal will be to sustain economic growth and spread it geographically to address regional disparities. 3. Borrowing costs: Healey must balance extra financial support with elevated borrowing costs, which are still above pre-pandemic levels. 4. Breathing space: He will aim to provide breathing space for households and families, as well as the Exchequer itself. 5. Fiscal discipline: The Budget will be guided by fiscal discipline, with a focus on maintaining control over public finances and reducing debt costs. Some notable points about Healey's background: 1. Time in Treasury: He has spent more time working in the Treasury than any recent Chancellor, which may help him navigate the complexities of the UK economy. 2. Gordon Brown era: He worked under Gordon Brown during a period when the Treasury was running an annual surplus, not a large deficit as it is today. 3. Prudence message: From his first day in office, Healey has emphasized the need for prudence and fiscal discipline. Some potential policy areas that may be addressed: 1. Welfare savings: The Labour government appears to believe they have the political capital to save money on welfare payments by getting people back into work. 2. Investment in jobs: There may be investment in programs to help people with mental health issues get back into employment and stay employed. 3. Defence and social care spending: Decisions on how to fund desired increases in these areas may be postponed until later, pending an improvement in the economic outlook. Overall, Healey's Budget will be a challenging balancing act between providing support for households and businesses while managing borrowing costs and maintaining fiscal discipline.