Business · Economy · 3 hrs ago
Haldane warns Healey's Budget could put growth and investment at risk
Andy Haldane expects Chancellor John Healey to raise taxes and borrow more in his first Budget, due in a week.
Haldane, a former Bank of England chief economist and adviser to Prime Minister Andy Burnham, says that approach could hurt economic growth.
He argues that businesses and investors need confidence that the UK is a good place to invest and create jobs.
The Government faces pressure from Labour's left to spend more, while Haldane says restraint on spending could reassure financial markets and lower borrowing costs.
He also says leaving only £15 billion of fiscal headroom would be too little protection against economic shocks.
The Conservatives favour spending cuts and lower business taxes and regulation as ways to support growth.
The September inflation figure is expected to be published today and will help determine next year's benefit increases for many claimants.
Andy Haldane warned that John Healey’s upcoming Budget could put UK growth at risk and deter investors.
The former Bank of England chief economist expects further borrowing and tax rises, which he said would be harmful to growth.
Haldane said he hoped the Budget would show restraint on spending and avoid raising taxes on households and businesses.
He argued that a larger fiscal buffer and spending restraint could reassure financial markets and lower borrowing costs.
He backed Conservative proposals to cut business and employment taxes, regulation and government spending.
- Who
- Andy Haldane warned about the expected Budget from Chancellor John Healey.
- What
- Haldane said tax rises and further borrowing could risk growth and deter investors.
- When
- The article was published on 21 October 2026; the Budget was expected the following week.
- Where
- The United Kingdom.
- Why
- Haldane said tax rises and borrowing could harm growth, while spending restraint could reassure financial markets.
Andy Haldane and the Conservatives
Labour's expected Budget approach
Budget priorities
Andy Haldane and the Conservatives
Haldane said he hoped for restraint on spending and no tax rises on households or businesses.
Labour's expected Budget approach
Haldane expected further borrowing and tax rises, and said he expected a Budget aimed at Labour backbenchers.
Growth policy
Andy Haldane and the Conservatives
Haldane backed Conservative proposals to cut business and employment taxes, regulation and government spending.
Labour's expected Budget approach
The article says Labour plans an expansive state, which Haldane said sits uneasily with the fiscal situation.
The Daily Mail published Haldane’s warning about Healey’s upcoming Budget.
Healey’s Budget was expected, with Haldane predicting further borrowing and tax rises.
- Chancellor
- John Healey
- Former Bank of England chief economist
- Andy Haldane
- Expected Budget timing
- The following week after 21 October 2026
- Fiscal headroom criticised by Haldane
- £15 billion
- Inflation figure cited
- 3.1 per cent in August
What people are saying
My hope is this is a Budget for business and bond markets.
Neither, I think, are good from a growth perspective.
A world in which the taxman takes the upside and investors take the downside is not an environment where investors will want to invest more money.