John Healey has delivered his first Budget to the House of Commons. Below, we summarise the key tax and spending policies he announced, as well as official economic forecasts. You can also follow our live blog over here . Economy Energy Taxes Defence Welfare Business support Workers Pensioners Public Spending Devolution Economy Government borrowing costs to be £14bn higher this year as a result of higher debt interest, as global turmoil makes bond markets nervous. The Office for Budget Responsibility (OBR) predicts Britain will have fiscal headroom of £15bn in 2029-30, rising to £22bn in 2030-31. The headroom is the financial cushion the Chancellor has to fund day-to-day spending without borrowing. Budget deficit to be “eliminated” in three years. Borrowing to fall from 4.4pc of GDP to 4.2pc this year. Then 3.4pc in 2027-28, 2.9pc in 2028-29, 2.1pc in 2029-30, and 1.8pc for the following two years. Debt to fall steadily from 83.2pc of GDP this year to 81.7pc by 2031-32. OBR forec...
Families and businesses brace for tax hits as the Chancellor grapples with a growing funding gap Daily Telegraph 27/10/26 Millions of households are bracing for further tax rises as John Healey prepares to deliver his maiden Budget on Wednesday. With narrowing fiscal headroom, a ballooning welfare bill and the total government debt at £3tn for the first time, the Chancellor will be forced to walk an economic tightrope to avoid causing a spike in UK gilt yields. Mr Healey also faces sustained economic fragility stoked by conflict in the Middle East. Driven by rising government borrowing costs, the Exchequer is forecast to be £11bn worse off by 2029-30 than expected in March, according to the Institute for Fiscal Studies (IFS). Advertisement Households are already facing tax increases on income from savings and rental properties from next April. It comes in addition to the continued squeeze on British workers from tax threshold freezes and plans to drag pensions into the scope of ...