🚨 BREAKING
What happened
What is the Budget and what could be in it? He has refused to rule out tax increases after acknowledging government borrowing costs are at "historic highs".
What we know
But the government's room for manoeuvre on tax is limited. Before the 2024 general election, Labour promised not to increase three big revenue earners for the government: income tax, National Insurance and VAT. What is the Budget? In his statement, delivered to MPs in the House of Commons, Healey will set out how the government plans to raise or lower taxes. Alongside the Budget, the Treasury will publish details about the measures and their costs. The independent Office for Budget Responsibility (OBR), which monitors government spending, will also publish an assessment of the health of the UK economy and a forecast of what it thinks will happen in the future. What might be in the Budget? The run-up to the Budget typically generates speculation about what might be in it, which the government is trying to keep to a minimum this year. Healey and Prime Minister Andy Burnham face a difficult balancing act, trying to offer more support to households and meet commitments on defence spending, while also sticking to Labour's manifesto commitments on tax and the government's self-imposed fiscal rules. The previous chancellor, Rachel Reeves, set out two main rules, which the new leadership has vowed to follow. These are: Not to borrow to fund day-to-day public spending by the end of this parliament To get government debt falling as a share of national income by the end of this parliament In March, the OBR calculated that the first rule would be met with a gap – or headroom – of £23.6bn.
Originally reported by BBC UK.
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