Healey promises Budget will ‘meet the moment’

Chancellor John Healey has pledged the Budget will "meet the moment", amid rising costs affecting households and businesses. He spoke at the International Monetary Fund's meetings in Bangkok, revealing his administration acted swiftly from the beginning to alleviate pressures with measures on energy bills, bus fares and business rates.

Healey stated he would continue to ease pressures further at the Budget, noting the Iran war and global trade tensions threatening growth and confidence. He reiterated the Budget must address the current pressures, saying, "It's got to meet the moment by recognising the pressures that households and businesses are under." The Chancellor also promised targeted, temporary support measures, acknowledging the government cannot fully remove these pressures.

The Bank of England warned a tough period for households and businesses lies ahead, with inflation likely exceeding four percent in early 2027 and interest rates potentially rising. While the IMF commended the UK's deficit reduction plan, city analysts expect no major tax or spending cuts. Financial firms fear Healey may target large banking profits to fund additional support.

Healey insisted he would not fuel Budget speculation, emphasizing the crucial role of British banks to the economy.