UK finance minister Healey set to pay for budget measures without more borrowing, FT reports
- Finance Minister John Healey plans to fund new initiatives, including a cost-of-living package, through tax increases or spending cuts to avoid additional borrowing in this month's budget, the Financial Times reported on Wednesday.
- The Iran war has strained Britain's public finances, compounding last year's 4.4% GDP deficit and forcing the Government to adhere to strict borrowing rules where day-to-day spending must be met by tax revenues.
- Healey intends to drop planned fuel duty increases of 3 pence a litre while establishing a "contingency fund" from available headroom, demonstrating fiscal responsibility.
- The IMF recently urged Britain to "stay the course" on its fiscal strategy, while a Treasury spokesperson stated the Government remains in lockstep on meeting fiscal rules.
- Preparations indicate The October 28 budget will be "scorecard positive" by 2029/30, ensuring additional discretionary spending is fully funded during the final year of the parliament.
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UK finance minister Healey set to pay for budget measures without more borrowing, FT reports
(Corrects paragraph 7 currency conversion) Oct 14 (Reuters) - UK finance minister John Healey is expected to pay for new initiatives in this month’s budget, including a cost-of-living package, with higher taxes or spending cuts rather than more borrow...
John Healy, the British Minister of Finance, is funding new initiatives in the budget scheduled for 28 October, including a package to meet rising cost of living, by increasing taxes or cutting spending rather than resorting to further borrowing. The Financial Times today reported that the financial package [...] is going to finance the new budget without borrowing written in the Stock Exchange.
UK Chancellor of the Exchequer John Healey is expected to finance all measures in the upcoming budget through higher taxes and cuts and not through borrowing.
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