Chancellor John Healey is set to announce his first Autumn Budget this week, outlining the government's plans for taxation, public spending and the wider economy for the next year. The Budget will take place on Wednesday (October 26) at approximately 12.30pm in the Commons, immediately after Prime Minister's Questions.
Fiscal Challenges and Leak Prevention
Mr Healey is seeking ways to raise revenue and keep the UK's budget deficit under control in the face of soaring government borrowing costs. So far, there has been much speculation as to how he plans to cut costs this year, with tax changes and new State Pension rules already hinted at by the Prime Minister.
In contrast with the speculation that has engulfed Westminster ahead of budgets in recent years, what has marked out the period running up to Mr Healey's first Budget is a relative lack of information. The Chancellor is said to have introduced security procedures to the Treasury from the Ministry of Defence to prevent Budget leaks.
Expected Announcements
However, what information has emerged in the weeks ahead of the fiscal event suggests Mr Healey will not be using the Budget to make radical changes to the Government's tax and spend plans, with the Times billing it as a “steady as she goes” Budget.
Public finances going into the Budget are constrained, with Mr Healey expected to have much less “headroom” against fiscal rules after higher borrowing costs linked to the Iran war. The Budget will stick to rules requiring day-to-day spending to be funded by taxes by 2029/30 and debt to be falling as a share of the economy in the same year, with headroom thought to have dropped from about £24bn to £12bn.
Housing and Welfare Measures
Some of the major announcements expected include housing-led measures such as the “Your First Home” scheme and more than £1bn for social and affordable housing, alongside a wider package covering devolution funding and powers for mayors. Tougher welfare enforcement, investment into tackling rough sleeping, business red-tape cuts, and no capital gains tax rise, are also expected to be announced later this week.
