John Healey's 28 October Budget: what we know beforehand

Chancellor John Healey will present his first Budget on 28 October 2026. According to a House of Commons Library briefing, he says it will include measures to give families and businesses "a bit of breathing space" after prices rose following the start of the current Israel/US conflict with Iran.

State of the economy

In a speech on 7 September 2026, Healey argued that the country was in a better position. He cited six interest rate cuts since the election, borrowing at its lowest level in six years and the fastest growth in the G7 in the first half of the year. He added that growth remains fragile, while productivity is starting to rise. He also acknowledged that the government's borrowing costs are historically high.

At the IMF Annual Meetings in Bangkok, the Chancellor said conflicts in the Middle East and Ukraine are pushing up energy prices and the cost of government debt. He assured finance ministers that his Budget is meant to protect the resilience of the UK economy.

Fiscal rules and possible risks

Healey says the Budget will meet the fiscal rules, with a buffer against uncertainty. According to the Commons Library, whether that requires tax rises or spending cuts depends on the forecast from the Office for Budget Responsibility (OBR). It is highly likely that debt interest spending will rise because of higher inflation and interest rates. The combined effect of earnings, economic growth and migration on the forecast is less clear.

BBC commentary suggests the current improvement could be harder to sustain from January. The Commons Library briefing notes that a large rise in household energy bills is projected for January, so support for some households is expected in the Budget.

What this means for you

Specific decisions on taxes and benefits will only be known on 28 October. Measures already in place, according to the Commons Library, include a temporary removal of the 5% VAT on domestic electricity and a cap on bus fares in England. Details of any further help with energy bills are not yet known.