Newly appointed Chancellor John Healey has announced that the first UK Budget under Prime Minister Andy Burnham will take place on Wednesday, October 28, according to reports from BBC News. Healey, who replaced Rachel Reeves earlier in the month, shared the date in a video message outlining the administration’s economic priorities.
Chancellor John Healey Sets October 28 for First Budget Under Prime Minister Andy Burnham
In his announcement, Healey stated that the upcoming fiscal package moves money and power out of Westminster, and into every postcode around Britain
. He emphasized that the financial plan will be built on fiscal discipline
and designed to meet established fiscal rules while providing stability for families and businesses. According to the Daily Mirror, Healey was named as one of Burnham’s first Cabinet appointments during the new government’s initial week in office.
Spending Limits and Policy Priorities
Ahead of the October 28 fiscal event, Prime Minister Andy Burnham and Chancellor Healey have instructed Cabinet members via a joint letter to operate strictly within their current spending limits. Reported initially by The Times, the guidance requires government ministers to fund new initiatives within existing departmental budgets.
Despite pressures from the ongoing war in Iran—which has driven up inflation and borrowing costs—senior Treasury sources indicate that the administration remains committed to staying well within the fiscal rules inherited from former Prime Minister Sir Keir Starmer and Rachel Reeves. These guidelines include a commitment to balance day-to-day spending with tax revenues by the end of the decade.
Burnham has repeatedly affirmed that his administration will maintain Labour’s 2024 election manifesto pledges, which include avoiding increases to the three main tax rates: income tax, Value Added Tax (VAT), and National Insurance contributions. However, independent think tanks have noted that the prime minister maintains a narrow margin of error, potentially requiring Healey to adjust spending or taxes to accommodate priority areas such as enhanced social care and extra defence spending.
Early Cost-of-Living Measures and Financial Challenges
Since taking office, the Burnham government has introduced several cost-of-living policies aimed at easing financial pressures on households and businesses. These early measures include:
- Scrapping VAT on domestic household electricity bills across the country.
- Reintroducing a £2 bus fare cap across England.
- Proposing a 20% reduction in business rates for pubs and small music venues.
The Chancellor faces considerable hurdles in securing adequate funding for public services. Healey—who previously served as Defence Secretary under Keir Starmer before resigning in June amid a dispute over military spending—must allocate £5 billion toward the recently announced defence investment plan (DIP). While Healey previously advocated for lifting national defence spending to 3% of gross domestic product (GDP) by 2030, Defence Secretary Wes Streeting declined to immediately commit to that specific timetable when questioned on the matter.
Additionally, the administration faces external calls regarding wealth taxation. Last week, a group of 120 millionaires, organized through the Patriotic Millionaires network and including figures such as Gary Lineker, submitted an open letter urging Prime Minister Burnham to implement wealth taxes targeted specifically at the nation’s highest earners.
