Chancellor Warns of Tough Budget because of Economic Impact of Iran War
John Healey said inflation and borrowing costs are rising as the conflict in the Middle East squeezes the UK’s fiscal buffer.
- The Chancellor warned the autumn Budget will be tough, stating, "What's happening in the Middle East is hitting inflation, it's hitting growth, it's hitting borrowing costs."
- Following a leap in government borrowing earlier this week, Healey issued the warning, reflecting lender concerns about the inflationary impact of President Donald Trump's war with Iran.
- Both the Chancellor and Prime Minister Andy Burnham remain "in lockstep in our determination to meet the fiscal rules," planning to maintain a "buffer against the sort of uncertainty that we have talked about."
- Conservatives criticized Healey for not recommitting to spending 3% of GDP on defence by 2030, though he confirmed the Government will reach 3.5% by 2035 to satisfy Nato commitments.
- Ahead of a major economic speech on Monday, Healey announced Treasury will lower the "discount rate" from 3.5% to 3%, helping demonstrate the long-term value of infrastructure projects like schools and roads.
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The Independent
The Independent (US)Chancellor warns of tough Budget as Iran war puts strain on economy
Donald Trump’s war with Iran is hitting ‘inflation, growth and borrowing costs,’ John Healey warns
In an interview with the Financial Times, John Healy said that Iran's conflict is likely to have a significant impact on his first budget due next October 28. Heyley, who succeeded Rachel Reeves after [...] the British Secretary of the Treasury warned of a difficult budget amid the fallout of the Middle East war written in the stock market.
John Healey warns of tough first budget as Middle East war puts pressure on economy
Chancellor told Financial Times he would ensure country had ‘buffer’ against uncertainty as global bond yields hit 18-year high The chancellor has indicated that the UK will face a tough budget next month due to Trump’s war in the Middle East. In an interview with the Financial Times, John Healey…
Chancellor warns autumn Budget may be tougher as Iran war drives inflation and borrowing costs - London Business News
Chancellor John Healey has warned that his first Budget could involve difficult decisions as the economic consequences of Donald Trump’s war with Iran feed through into inflation, growth and government… The post Chancellor warns autumn Budget may be tougher as Iran war drives inflation and borrowing costs appeared first on London Business News
"The ongoing conflict between the US and Iran is creating unprecedented difficulties for the country and the world economy"
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