New Chancellor John Healey has confirmed that his first Budget will be delivered on October 28. The announcement comes as the government faces scrutiny over significant unfunded spending pledges.
Healey stated that the Budget aims to redistribute resources, saying it will move "power and money out of Westminster and into every postcode." He emphasized that the upcoming fiscal plan "will be built on fiscal discipline" and "will meet our fiscal rules," intended to provide stability for businesses and families.
The date is nearly a month earlier than the previous Budget, a move Healey suggested is designed to preempt anticipated inflation increases later in the year. This timing, however, has drawn criticism from opposition figures.
Mel Stride, the Conservative opposition's Treasury spokesperson, warned that the October 28 date provides "89 more days of unfunded spending commitments and economy-damaging tax speculation." The Conservative party has previously raised concerns that the current government has accumulated approximately £96 billion in unfunded spending commitments, which they estimate could translate to over £4,300 in increased taxes for every working household.
Recent government spending initiatives cited include £1.7 billion for removing VAT from energy bills, capping bus fares at £2, a pledge to end rough sleeping, and reductions in business rates for pubs and music venues. Healey himself had previously resigned as Defence Secretary over funding disagreements, reportedly demanding an additional £15 billion for military spending.
The government also faces the challenge of increasing its 'fiscal headroom'—the surplus cash available after meeting borrowing and debt obligations. This headroom, which stood at £23.6 billion in March, has reportedly fallen to £8 billion, leaving it vulnerable to potential financial shocks.