Britain set its autumn budget for 28 October as borrowing costs rise under the economic fallout of the Iran war

John Healey, Britain's chancellor of the exchequer, announced on Friday, 31 July 2026, that the country's autumn budget will be delivered on 28 October. He said Labour would stick to its fiscal rules in order to give businesses and households stability. Andy Burnham, Britain's new prime minister, has used his first two weeks in office to announce a series of policies, from a VAT cut on energy bills and lower business rates for pubs, clubs and live music venues to a cap on bus fares and a promise to give England's regional mayors a share of income tax.

According to The Guardian, the UK government's borrowing costs on global financial markets have risen sharply in recent weeks, as the economic fallout from the Iran war weighs on activity, stokes inflation and adds to fiscal pressures for countries around the world. With annual borrowing elevated and the UK national debt at its highest level since the 1960s, investors warn that the government has limited room for manoeuvre in the public finances.

Burnham has stuck to Labour's manifesto commitments, including ruling out increases in income tax, national insurance and VAT. Traders' unease over the possible appointment of Ed Miliband as chancellor eased with the choice of Healey and the retention of Rachel Reeves's fiscal rules, under which spending must be balanced by receipts. Even so, investors say the government faces a delicate balancing act that may lead Burnham to consider tax rises. The Times also reported that Healey, in a joint letter with the prime minister, instructed cabinet colleagues that any new announcement "must be funded from within existing budgets".