Chancellor John Healey promises breathing space in upcoming UK budget

Chancellor John Healey has promised that his first budget will offer consumers and businesses a breathing space while sticking to fiscal rules. Speaking to journalists at the International Monetary Fund annual meetings in Bangkok, the Guardian reported that Healey acknowledged rising living costs and business expenses. The Financial Times also reported that Healey promised to stay the path on reducing the United Kingdom deficit. [1][5]

The Guardian reported that the chancellor intends to deliver his first budget in two weeks. His remarks follow a report from The Telegraph indicating that Healey is planning a 1 billion pound budget crackdown on online retailers. According to The Times, the chancellor has also been warned that raising capital gains tax could put economic growth at risk. [1][2][4]

John Healey has served as Chancellor of the Exchequer under Prime Minister Andy Burnham since July 20, 2026. He previously served as Secretary of State for Defence under Keir Starmer from 2024 to 2026 and held junior ministerial positions under Tony Blair and Gordon Brown. A Labour Party politician, he has been a Member of Parliament for South Yorkshire constituencies since 1997. [6][7]

As FTMQ News reported earlier, the Treasury has been considering a tax crackdown on online marketplaces to compel foreign retailers to pay VAT, potentially raising up to 1 billion pounds. That proposal comes as the Institute for Fiscal Studies warned of a funding gap of up to 35 billion pounds ahead of the budget scheduled for October 28. [9]