Businessglobal-economy
Healey faces £35bn Budget challenge to meet spending pledges
Chancellor John Healey faces a funding gap of up to £35bn in his upcoming October 28 Budget, according to a warning from the Institute for Fiscal Studies (IFS). The think tank highlights that the ongoing Iran war and subsequent higher inflation pose major risks to the government's fiscal plans. To fulfill pledges such as raising defense spending to 3% of national income by 2030 and increasing health funding, the Treasury will need significant extra resources. This leaves the chancellor facing tough decisions regarding potential tax rises, spending cuts, or a combination of both.