Healey told ministers new spending pledges must be funded from existing budgets, underscoring pressure on public finances ahead of his first Budget on 28 October.
UK Chancellor John Healey said his first Budget will be delivered on Wednesday 28 October and signalled a tight fiscal approach as the new government weighs fresh spending commitments against self-imposed borrowing limits. Healey has said the Budget will be built on fiscal discipline, comply with the government’s fiscal rules and shift money and power out of Westminster, while HM Treasury has opened a consultation portal for Budget representations until 23:59 on Wednesday 9 September. New pressure on the fiscal outlook emerged as Healey and Prime Minister Andy Burnham wrote to cabinet ministers saying there was no new money available for plans including expanding technical education, devolving power to regional governments and easing cost-of-living pressures, according to the Times. Healey said all new announcements must be funded from within existing budgets and called for reprioritisation across departments to help control borrowing and inflation. He also said Britain’s rising welfare bill must be controlled, did not rule out tax rises, and indicated that a path toward NATO defence spending goals would be a central issue in next year’s spending review.