Burnham’s government unveils its first UK budget: What to expect
Summary
UK Chancellor John Healey is due to present the government’s first budget under Prime Minister Andy Burnham on Wednesday. The budget comes as inflation and borrowing rise, energy bills are expected to increase, and the government faces pressure to fund defence plans while meeting its fiscal rules.Key Facts
- Healey is scheduled to announce the budget in Parliament at 12:30 GMT on Wednesday.
- The article says the UK’s total borrowing passed £3 trillion in September and that debt interest costs about £100 billion a year.
- Energy bills are expected to have their largest increase in four years in January, amid conflict in the Middle East.
- Burnham said the budget would explain how the government plans to fund its previously announced defence investment plan.
- The defence plan, announced in June, is backed by £298 billion in investment.
- The government’s stated pathway includes NATO defence spending targets of 3 percent of GDP by 2030 and 3.5 percent by 2035; current spending is about 2.6 percent.
- The Guardian reported that Healey aims to address a £4.7 billion gap in defence funding, potentially through cuts to other departments.
- An economist at the Resolution Foundation expects a relatively small budget, with some measures to offset living costs and larger decisions delayed until next year.
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