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

Healey said the budget will protect fiscal rules as investors watch for tax rises to cover spending pressures and a £5 billion defence shortfall.

  • On Monday, Finance Minister John Healey delivered his first major speech in Coventry, insisting the UK economy is "turning a corner" while committing to strict spending controls ahead of his October 28 Budget.
  • Healey faces pressure within a narrow £24 billion fiscal buffer as rising global borrowing costs heighten investor scrutiny of his debut budget strategy, forcing difficult spending and tax decisions.
  • To drive private investment, Healey announced £150 million from the British Business Bank for northern scale-ups, emphasizing growth in "every postcode" and promising to end the Treasury's "consultation culture."
  • Despite pledges to avoid raising income, VAT, or corporation tax, opposition critics and economists warned Healey may need to raise taxes to restore fiscal headroom before October's budget.
  • Prime Minister Andy Burnham's administration aims to devolve power to regional leaders, seeking to link fiscal discipline with long-term infrastructure investment to unlock growth outside London.
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Evening Standard broke the news in London, United Kingdom on Sunday, September 6, 2026.
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