What is the Budget and what could be in it?
The UK government is preparing for its upcoming October Budget, with Chancellor John Healey facing pressure to balance spending commitments with strict fiscal rules. The government must navigate high borrowing costs while attempting to avoid tax increases on income, National Insurance, and VAT.
Why it matters
The Budget will define the economic trajectory of the new UK administration and determine how they manage public debt and service funding.
Image source, Dan Kitwood/Getty Images Published 28 September 2026 Updated 4 hours ago Chancellor John Healey will set out Labour's tax and spending plans when he delivers his first Budget on 28 October.
He has refused to rule out tax increases after acknowledging government borrowing costs are at "historic highs".
But the government's room for manoeuvre on tax is limited.
Before the 2024 general election, Labour promised not to increase three big revenue earners for the government: income tax, National Insurance and VAT.
In his statement, delivered to MPs in the House of Commons, Healey will set out how the government plans to raise or lower taxes.
Alongside the Budget, the Treasury will publish details about the measures and their costs.
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