John Healey vows to give ‘breathing space’ to consumers and businesses in first budget

AI desk brief

UK Chancellor John Healey signalled his first budget will aim to give consumers and businesses “breathing space” while keeping to Labour’s fiscal rules, with further energy support expected ahead of the 28 October statement. He also said cabinet spending will have to be reprioritised and declined to comment on possible tax rises to offset higher energy and borrowing costs.

For metals, the key read-through is the macro backdrop: renewed UK energy support and higher power prices into January could keep inflation pressure elevated, while the government’s insistence on fiscal discipline and IMF backing may limit the extent of any bond-market repricing. Healey also hinted at more UK support for Ukraine, underscoring continued European energy-security risk.