The UK chancellor has pledged to use his budget on 28 October to provide relief to households and businesses struggling with rising costs, while staying within the government's fiscal framework. Speaking at the International Monetary Fund annual meetings in Bangkok, Healey said he wanted to give Britain "a bit of breathing space" while reinforcing the strength of the country's economic plans. The government has already cut VAT on electricity bills and is expected to announce further energy support at the budget ahead of a predicted sharp rise in the energy price cap in January.
Healey said he would maintain the spending plans set by his predecessor Rachel Reeves and that cabinet members would need to find additional resources within their existing budgets if they wanted to pursue new initiatives. He stressed that the government would meet the fiscal rules established by Reeves, and noted that the IMF has praised the UK for setting out a plan to tackle its deficit.
The chancellor declined to specify whether particular tax measures, such as increases on banks or capital gains tax, would feature in the budget. He said that speculation about budget contents in the past had caused damage, with people cashing in pensions early or holding back on business investment unnecessarily. Healey also indicated he was developing an additional support package for Ukraine, to be announced at the budget.