Chancellor Healey unveils maiden budget timetable

Chancellor John Healey will deliver his first budget on October 28.

Britain’s latest finance chief says the headline policy event would be “built on fiscal discipline” and support wider plans to move “money and power out of Westminster”.

He added it would “meet our fiscal rules” and “give businesses and families some of the stability they need to plan for the future”.

However, he is expected to face significant challenges as he finds more money for Prime Minister Andy Burnham’s devolution priorities, increased defence spending and cost-of-living measures, such as reduced business rates for pubs.

In a letter to Commons Treasury Committee chairwoman Dame Meg Hillier, the Chancellor stressed his commitment to fiscal discipline.

He said: “Fiscal credibility is the bedrock of economic stability and national security.

“That is why we will abide by the fiscal rules, ensuring we retain a buffer to protect us against uncertainty and the impact of instability in the Middle East.”

In her last budget, Rachel Reeves left a £22 billion buffer against her fiscal rules, but persistent inflation due to the Iran war could have eaten away at this.

Meanwhile, experts have warned the Chancellor will need to either raise taxes or cut spending elsewhere as pressure on the public finances has left no room for extra borrowing.

Stephen Millard, National Institute of Economic and Social Research deputy director for macroeconomics, suggested the Chancellor look at the welfare bill or the pensions triple lock as areas for potential cuts.

He also suggested considering an income tax raise, which would break Labour’s 2024 manifesto pledge.

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