Budget in October, Healey announces, as ministers urged to stick to spending limits

What happened

Image source, Getty ImagesImage caption, Chancellor John Healey said his first budget would be built around fiscal disciplineByJennifer McKiernan, Political reporter and Emer Moreau, Business reporterPublished31 July 2026Updated 3 minutes agoChancellor John Healey has announced the date of his first Budget will be Wednesday, 28 October.In a video message, he said: "This will be a Budget that moves money and power out of Westminster, and into every postcode around Britain."It will be built on fiscal discipline. It will meet our fiscal rules. It'll give businesses and families some of the stability they need to plan for the future. Now, let's get on with the job."A report in the Times says Healey and Prime Minister Andy Burnham have written a joint letter to Cabinet members telling them they must stick within their existing spending limits while funding new pledges.The Times says ministers have been told they had to live "within the budgets they have already got" even while "pay[ing] for new things they want to do this year and next".While the ongoing war in Iran is pushing up inflation and borrowing costs, senior Treasury sources confirmed the government is determined to stay "well within the fiscal rules" inherited from Sir Keir Starmer and Rachel Reeves.It comes after Burnham announced a host of new cost-of-living policies since taking office earlier this month,…

Broader Context and Outlook

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