28th Oct 2026 12:54
(Alliance News) - UK Chancellor of the Exchequer John Healey on Wednesday said his budget is "for the working people of Britain", built on fiscal discipline.
Delivering his first budget to Parliament, Healey said the Labour government plans will give "breathing space" to households and bring "innovation and growth in every postcode".
Healey pledged to tackle challenges on energy, security and housing, and bring a new approach to give people "fresh hope" in the future.
Healey paid tribute to his predecessor Rachel Reeves who he said brought fiscal discipline to the country. The country is facing "global economic storms", the new chancellor said, but he pledged to meet the government's fiscal rules.
Healey said the Office for Budget Responsibility has estimated the fiscal buffer for 2029-30 is GBP15 billion, reduced from GBP23.6 billion forecast in March.
The OBR has estimated the UK will spend GBP14 billion more on debt interest related to higher borrowing costs caused by soaring energy costs from the Middle East war.
Healey said the OBR forecasts economic growth of 1.2% in 2026, raised from 1.1%, 1.0% in 2027, lowered from 1.6%, followed by growth of 1.6% in 2028 and 1.8% in 2029.
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2026 Alliance News Ltd. All Rights Reserved.