Labour figures seek clearer signal on Healey’s budget plans
With borrowing costs and energy prices rising, some Labour figures say the Chancellor has yet to set out his approach to tax, spending, investment and growth.
Chancellor John Healey faces calls from some Labour figures to give a clearer account of his priorities ahead of his first budget on 28 October. They say his recent conference speech stressed fiscal discipline but offered little detail on taxation, spending, investment or growth.
The concerns come as financial pressures narrow the room for budget choices. The Guardian reported that UK 30-year government bond yields reached 6% on Thursday, their highest level since 1998, while Barclays raised some mortgage rates for the second time in a week.
Market movements since spring are expected to have eroded at least half of the £24 billion fiscal headroom built up by former chancellor Rachel Reeves. That is an estimate, not a final Treasury assessment. Rebuilding the buffer in full could require significant tax rises or spending cuts; Healey is believed to be willing to accept a smaller margin.
Some Labour figures warn that a lack of clarity on tax and spending could unsettle markets when the budget is delivered. Their concerns do not establish a settled party view, and Healey has not confirmed the choices he will make.
Healey’s team says the budget will be tightly focused and stresses economic discipline. The Treasury is also seeking to limit pre-budget leaks, using restricted information-sharing arrangements between teams.
Reports that Healey may meet bank executives have prompted speculation about a banking-sector windfall tax, but no such measure has been confirmed. The budget is also expected to address pressure over energy costs, while decisions on spending and other policy demands remain unresolved.
