Chancellor leaves door open to tax rises as October Budget pressure builds
Britain’s chancellor has left open the possibility of tax rises in next month’s Budget, as surging borrowing costs tighten the squeeze on public finances. John
Britain’s chancellor has left open the possibility of tax rises in next month’s Budget, as surging borrowing costs tighten the squeeze on public finances. John Healey said on Monday he would not comment on specific tax decisions before his first Budget on 28 October.
Speaking to the BBC, Healey said he wanted to restore “confidence about Britain” even as he acknowledged the strain of “historic high” borrowing costs. He said the government’s focus would be on “doubling down” on “more growth generated in more places.”
Growth first, but no tax promise
Healey stopped short of ruling out higher taxes when pressed on how he plans to manage the numbers. Instead, he said only that he would “balance the books” and “control public spending.”
That leaves room for manoeuvre — and for speculation. The message was plain. No early promises.
The chancellor also said he wanted people to feel “confident about Britain and our future,” a tone that suggested the Treasury is trying to steady nerves as the Budget approaches. But the backdrop is difficult. Borrowing costs have risen sharply this month, adding pressure to the public finances and narrowing the room for fiscal choices.
Jobs shock adds to the pressure
Healey pointed to the announcement of 4,000 jobs at Jaguar Land Rover, mostly in the UK, as a sign that “times are tough.” The warning landed as the government tries to project optimism without ignoring weakness in the economy.
He also said ministers were responding to “extreme pressures in the wider market” as borrowing costs climbed. The chancellor reiterated that he wants to “bring down welfare costs” as part of the effort to keep the fiscal position under control.
The Budget on 28 October will be his first major test. For now, the signal from the Treasury is cautious rather than definitive. The numbers are biting, and the options are narrowing. All eyes now move to the red box — with just 50 days until the Budget.
