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UK sets 28 October autumn budget to fund Burnham’s tax and spending plans

The move comes as borrowing costs have risen amid fallout from the Iran war and UK debt is at its highest level since the 1960s, leaving limited room in public finances.

Reported · Written up by our desk · North America

The UK government has scheduled its autumn budget for 28 October, with Chancellor John Healey saying the plan is meant to spread resources and decision power beyond Westminster as Prime Minister Andy Burnham pushes forward tax and spending initiatives.

In recent weeks, Burnham has rolled out a package of measures including a VAT cut on energy bills, reductions to business rates for pubs, clubs and live music venues, a cap on bus fares, and a pledge to give England’s regional mayors a share of income tax.

The Guardian Business reports the chancellor will need to balance those commitments with Labour’s fiscal rules, including keeping spending balanced by receipts, as markets have sent borrowing costs higher in recent weeks.

The article notes concerns from City investors that the government is dealing with elevated annual borrowing and national debt at its highest level since the 1960s, with investors warning the administration may face difficult trade-offs, including the possibility of tax rises if funding gaps emerge.

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