Chancellor John Healey Sets First Budget for October 28

Chancellor John Healey will deliver his first Budget on October 28. The announcement follows spending commitments made by Prime Minister Andy Burnham since July, including pledges for increased council housebuilding and free social care.

Economists from Capital Economics warn the Budget could include tax increases totaling up to 0.8 per cent of GDP. Potential measures under consideration include a bank levy, higher inheritance and capital gains taxes, a standalone wealth tax, and a new ring-fenced levy for social care or defense.

While Prime Minister Burnham and Chancellor Healey have urged Cabinet colleagues to find departmental savings to maintain existing fiscal rules, Healey has declined to rule out tax rises. HM Treasury stated that tax decisions will be set out during the Budget rather than commented on in advance.

The administration has faced difficulties recruiting senior economic advisors. Lord O’Neill of Gatley reportedly turned down a formal role due to concerns over the potential implementation of a wealth tax.