Chancellor John Healey faces a difficult balancing act in his first Budget on 28 October, needing to address high borrowing costs and support households while sticking to Labour's tax pledges.
01Summary
- 01Healey will deliver Labour's first Budget to MPs on 28 October, having refused to rule out tax increases due to record high government borrowing costs.
- 02Labour pre-election promised not to raise income tax, National Insurance or VAT.
- 03The OBR forecast the fiscal rule headroom could shrink to £12bn from £23.6bn, partly from higher borrowing costs.
- 04Speculation includes changes to Capital Gains Tax, a crackdown on online retailers' tax collection, and energy bill support for benefit recipients.
- 05The Bank of England held interest rates at 3.75% in September, citing persistent inflation at 3.1%.
02Why it matters
The Budget will directly affect your taxes, household bills, and the housing market, including potential changes to energy costs, capital gains rules, and first-time buyer support.
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