Business · Economy · 1 hr ago
Healey promises support for households and businesses in first UK budget
UK Chancellor John Healey says his first budget will offer households and businesses breathing space as costs rise.
He made the pledge in Bangkok while attending the International Monetary Fund’s annual meetings.
The budget is due on 28 October, ahead of an expected sharp rise in the energy price cap in January.
The government has already cut VAT on electricity bills, and Healey is expected to announce more energy support.
He says the government will stick to Labour’s fiscal rules and the spending plans set out by his predecessor, Rachel Reeves.
He did not say whether taxes on banks or capital gains would rise, and said departments would need to reprioritise to fund new measures.
Healey is also working on more support for Ukraine, which could be announced in the budget.
John Healey said his first budget would aim to give consumers and businesses “breathing space” while meeting Labour’s fiscal rules.
The chancellor is expected to announce more energy support in a tax and spending statement on 28 October.
Healey said departments would need to reprioritise within existing budgets to fund new measures.
He declined to say whether he would raise taxes on banks or capital gains to offset budget pressures.
He also said he was working on additional military, diplomatic and economic support for Ukraine.
- Who
- John Healey, the UK chancellor.
- What
- He promised support for households and businesses in his first budget while saying he would stick to Labour’s fiscal rules.
- When
- The tax and spending statement is scheduled for 28 October 2026.
- Where
- Healey made the remarks in Bangkok, where he was attending the IMF annual meetings.
- Why
- He said he was conscious of rising costs and wanted to give consumers and businesses “breathing space.
This story does not have two clearly opposing sides.
Healey and Bank of England governor Andrew Bailey chaired a meeting of G20 policymakers.
Healey was due to fly back to London to finish preparing the budget.
Healey is expected to deliver a tax and spending statement, including a further package of energy support.
- Chancellor
- John Healey
- Statement date
- 28 October 2026
- Expected energy price cap rise
- January
- Existing energy measure
- VAT on electricity bills has been cut
- Fiscal approach
- Healey said he would meet Labour’s fiscal rules and stick to existing spending plans
3 sources
What people are saying
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,
We will meet those fiscal rules, and I think one of the hallmarks of the IMF’s backing of our fiscal plans is recognition that there isn’t just a forecast for the future, but there’s some evidence of performance already.
I’m working on different ways we can step up support for Ukraine: military, diplomatic and economic, and you know, if anybody needed any reminder of that, it’s what we see coming out of Ukraine, with [Vladimir] Putin targeting these energy systems with thousands without power, as we’ve got a harsh winter approaching.
The prime minister’s talked about recognising the cost of business, not just the cost of living.