John Healey has promised to use his first budget in a fortnight’s time to offer consumers and businesses a “breathing space” while sticking to Labour’s fiscal rules. Speaking to journalists in Bangkok, where he has been attending the International Monetary Fund annual meetings, the chancellor said he was conscious of rising costs. The government has already cut VAT on electricity bills, but Healey is expected to announce a further package of energy support at his 28 October tax and spending statement, before what is expected to be a sharp rise in the energy price cap in January.
He said: “The prime minister’s talked about recognising the cost of business, not just the cost of living.” Healey also reiterated his insistence that he would be sticking to the spending plans set out by his predecessor Rachel Reeves at last year’s spending review – and that cabinet colleagues would have to find any additional resources within their existing budgets. Healey stressed he would stick to the rules set out by Reeves. It led to people holding back or not investing in their businesses when they didn’t need to.
So I’m just not going to get drawn into any speculation.” Healey, a former defence secretary, also hinted he was working on an additional package of support for Ukraine, to be announced at the budget. He said: “I’m working on different ways we can step up support for Ukraine: military, diplomatic and economic, and you know, if anybody needed any reminder of that, it’s what we see coming out of Ukraine, with [Vladimir] Putin targeting these energy systems with thousands without power, as we’ve got a harsh winter approaching. The chancellor will fly back to London on Thursday evening to put the finishing touches to the budget.
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