Just a week after being appointed UK chancellor, John Healey has revealed the Autumn Budget will be held on Oct. 28. In a surprise announcement toward the very end of the working week, he reinforced some of the themes already trailed by the new prime minister, Andy Burnham, who took power on July 20.
“This will be a Budget that moves money and power out of Westminster, and into every postcode around Britain,” Healey said of plans for “fiscal devolution,” wherein regions will take greater control over tax and spending. “It will be built on fiscal discipline. It will meet our fiscal rules. It’ll give businesses and families some of the stability they need to plan for the future.”
After the date was announced, the pound rose against the dollar to USD 1.35 from USD 1.34 on July 30. The 10-year gilt rose 0.07 percentage points on the day to 5.05%.
The October budget will be watched closely for potential increases to personal taxation, even though the 2024 Labour manifesto ruled out increasing income tax, VAT, or national insurance. Burnham has already warned that “difficult choices” lie ahead for taxpayers as the government embarks on a 10-year plan.
“With a couple of crowd-pleasing spending plans already announced, Healey will undoubtedly be hoping to find a few more to keep the Burnham bounce going, despite turgid economic growth and ongoing global uncertainty,” says AJ Bell public policy director Tom Selby. He believes the chancellor needs to end speculation about the fate of the triple lock, the state pension commitment that costs the government £10 billion a year.
Holding the budget in October marks a departure from 2025, when former chancellor Rachel Reeves outlined a raft of tax-raising measures on Nov. 26. The next Autumn Budget will also be the earliest since 2021, when it was held on Oct. 27.
Measures Already Announced by Prime Minister Burnham
- Axed VAT on electricity bills from Oct. 1.
- Pledged to reform social care funding.
- Cut business rates for pubs.
- Confirmed that the stamp duty will not be scrapped.
