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UK's finance minister Healey walks fiscal tightrope before first budget

Healey said he will keep spending under control as he weighs tax rises and a £5 billion defence gap before next month’s Budget.

  • On Monday, Chancellor John Healey delivered his first major speech in Coventry, insisting the UK economy is 'turning a corner' ahead of his debut Budget on October 28, 2026.
  • Rising borrowing costs have tightened the government's fiscal headroom, leaving Healey with roughly £24 billion in leeway while investors remain sensitive to market volatility.
  • To drive regional growth, the Chancellor announced £150 million in British Business Bank funding for northern firms, aiming to spread economic activity outside London.
  • Conservative finance policy chief Andrew Griffith criticized the speech, calling Healey 'continuity Rachel Reeves' and warning that tax rises are 'inevitable' at the upcoming Budget.
  • Navigating challenges from the Middle East, Prime Minister Andy Burnham's priorities for social care and defense spending remain central to the upcoming fiscal package.
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Evening Standard broke the news in London, United Kingdom on Sunday, September 6, 2026.
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