Brief
Healey warns UK Budget will be tough as IMF meeting highlights fiscal pressure
Healey told the BBC from the IMF meeting in Bangkok that the October 28 Budget will need to manage with existing resources amid rising costs.
By Felo News Desk · Published
Chancellor John Healey told the BBC from the International Monetary Fund (IMF) meeting in Bangkok that the United Kingdom’s Autumn Budget, due on 28 October, will be a "tough time" for public finances. He said the British public recognises the pressure from global economic conflicts, including the war between the United States and Iran, and expects government departments to manage with the budgets they have.
What happened
During the IMF gathering in Thailand, Healey was asked whether the forthcoming fiscal statement to the Commons would be austere. He replied that the Budget would be tough but that the government would set out the figures in two weeks’ time. He stressed that departments must control spending and that the IMF has endorsed the UK’s discipline in managing its deficit.
What the reports add
The Standard reported that the IMF praised Britain for reducing its budget deficit and for weathering the impact of the Iran war better than expected, while also warning that inflation from the conflict could worsen before improving. The outlet also noted that Healey and Prime Minister Andy Burnham have reportedly rebuffed Health Secretary Yvette Cooper’s request for extra cash to fund a nurses’ pay deal, directing her to use existing NHS funds.
What was said
Healey told the BBC, "Well, it’s a tough time. People can see the global economic conflicts, they know the pressure it’s putting on them, they understand it’s putting pressure on the Government." He added, "Our departments have the spending, and the Prime Minister and I being in lockstep about this… we have to make sure that we can pay for them within the budgets that we’ve got and control spending, and that’s part of the discipline."
How it came about
Healey’s comments follow earlier Felo News coverage of the upcoming budget, including the announcement that he will deliver the statement on 28 October and the Institute for Fiscal Studies’ warning that a "steady‑as‑she‑goes" approach would be untenable. Recent bond‑market pressure, with UK gilt yields rising to over 6 %, has also heightened fiscal scrutiny ahead of the Budget.
Key facts
- Chancellor John Healey said the upcoming Autumn Budget will be tough. (standard.co.uk)
- Healey made the comments while attending an IMF meeting in Bangkok. (standard.co.uk)
- The IMF praised the UK for reducing its deficit but warned inflation could worsen. (standard.co.uk)
- Healey and Prime Minister Andy Burnham have rebuffed Health Secretary Yvette Cooper's request for extra NHS funding. (standard.co.uk)
Sources
- [1] standard.co.uk — originally reported as “Budget will have to reflect ‘tough time’, Healey says during IMF visit”
