John Healey, the Chancellor of the Exchequer, has pledged to provide consumers and businesses with a "breathing space" in his upcoming budget, while adhering to Labour's fiscal rules. Speaking to journalists in Bangkok during the International Monetary Fund (IMF) annual meetings, Healey acknowledged the rising costs affecting the UK economy.
Budget Goals
Healey stated, "I want the budget to be a budget that gives Britain a bit of breathing space – but also reinforces the strength of our fiscal plans and the strength of our resilience and our economy for the future." This statement comes ahead of his first budget announcement scheduled for 28 October.
The government has already implemented a reduction in VAT on electricity bills, and Healey is expected to unveil a further package of energy support in light of an anticipated increase in the energy price cap in January.
Commitment to Fiscal Discipline
The Chancellor emphasized his commitment to the spending plans established by his predecessor, Rachel Reeves, during last year's spending review. He noted that cabinet colleagues would need to identify any additional resources within their existing budgets, stating, "When the second half of a spending review is in place, there are pressures on departments, and colleagues are doing a good job of managing with what they’ve got. You have to reprioritise if you want to do fresh things."
