Healey Vows to Maintain Fiscal Rules Ahead of UK Budget

LONDON: UK Chancellor of the Exchequer John Healey has pledged to maintain the government’s fiscal rules while using next month’s Budget to support economic growth, investment and employment.

Addressing the Labour Party conference in Liverpool, Healey said the government remained committed to balancing day-to-day spending with tax revenues by the end of the decade. He stressed that fiscal discipline would underpin the government’s economic plans, amid pressure on public finances and rising borrowing costs.

Healey said the government would seek to promote growth across the country while maintaining control over public spending. He also acknowledged that the financial resources available to the government were more constrained than those enjoyed by the Labour government of the 1990s.

The Chancellor highlighted youth employment and welfare reform as important elements of the government’s economic agenda. He announced an expansion of the Local Apprenticeships Service, allowing mayors across England to participate in schemes designed to connect young people with employers and provide additional apprenticeship opportunities. The programme is expected to roll out nationally from March 2027.

Healey also outlined plans for what he described as a “new age of industrialisation”, including new investment in British industry and shipbuilding. The government has announced plans for three new floating docks for the Royal Navy’s submarine service at HM Naval Base Clyde, alongside other measures aimed at supporting industrial capacity.

The Chancellor’s comments come ahead of the government’s Budget, scheduled for October 28, as ministers face pressure to manage increased spending commitments while maintaining fiscal stability. The government has previously confirmed that the Budget will be based on its fiscal rules and is intended to provide greater stability for businesses and households.

Recent official figures have added to the pressure, with UK government borrowing in August reported at £18.3 billion, above expectations and the comparable figure from a year earlier. The higher borrowing has intensified scrutiny of the government’s approach to taxation and public spending ahead of the Budget.