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UK chancellor seeks confidence ahead of first Budget despite high debt costs

The chancellor highlighted rising borrowing costs and possible multi-billion pound funding gaps, even as he said he would not raise taxes on working people.

Reported · Written up by our desk · Economy

BBC Business reports that UK Chancellor John Healey called for restoring “confidence about Britain” while acknowledging the impact of “historic high” borrowing costs ahead of his first Budget on 28 October.

Healey said his priority is to generate “more growth in more places,” pitching policies such as more devolution, investment, innovation, and jobs, and referencing the announcement of 4,000 mostly UK-based jobs at Jaguar Land Rover.

He warned that “times are tough,” declined to comment on specific tax decisions for the Budget, and said he would focus on “balanc[ing] the books” and controlling public spending.

Healey also tied his fiscal approach to having a spending buffer against uncertainty highlighted by the local JLR decision, while noting that recent “ructions” in government debt markets have increased pressure on public finances, including the need to address potential multi-billion pound gaps from higher borrowing costs and higher defence spending.

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