UK chancellor John Healey prepares first budget amid Middle East war shock
Briefing by News4U · First published
Healey will deliver the 2026 budget on Wednesday, facing reduced fiscal headroom and cost-of-living pressures from the Middle East conflict.
The Guardian Business reports that UK chancellor John Healey will deliver his first budget on Wednesday, facing a reduced fiscal headroom of about £12bn after the Middle East war triggered a global inflation shock. [1]
Healey plans more than £1bn in energy support for households and businesses, while devolution measures will include a new £1.5bn borrowing facility for elected mayors and local retention of income tax. [1]
The government will also address a rise in young people not in education, employment or training to almost 1 million, with welfare reform and local support measures under consideration. [1]
Sources
- Budget 2026: six charts that reveal the economic realities facing the chancellor
The Guardian Business · · Excerpt