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UK Finance Minister Healey Set to Pay for Budget Giveaways 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 to demonstrate fiscal responsibility.
- Britain's fiscal strategy received backing from The IMF, which urged the country to "stay the course," while a Treasury spokesperson stated the Government remains in lockstep on meeting fiscal rules.
- Preparations indicate Healey's first annual budget on October 28 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...
The October 28 fiscal package will have a "positive rating" in 2029-2030, the last year of the current parliamentary term.
Coverage Details
Total News Sources10
Leaning Left0Leaning Right1Center3Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
C 75%
R 25%
Factuality
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