<p>John Healey is announcing his financial update – here are the main points, with political analysis</p><ul><li><p><a href="https://www.theguardian.com/uk-news/live/2026/oct/28/budget-2026-latest-updates-john-healey-andy-burnham-labour-uk-politics">Budget 2026 live – latest updates</a></p></li></ul><p>John Healey starts by saying that his budget is “delivered at a time when global uncertainties and pressures are swirling worldwide and hitting people here at home”.</p><p>Healey says he will meet the fiscal rule that day-to-day spending must be covered by tax receipts, and the investment rule that government debt, defined as public sector net financial liabilities, must be falling as a percentage of GDP in the third year of the forecast.</p><p>The government will have £15bn of headroom in 2029-30 and £20bn in 2030-31, according to the Office for Budget Responsibility, the government’s forecaster.</p><p>Government borrowing will be 4.2% of GDP this year, 3.4% next year, then 2.9%, 2.1% and 1.8% by 2030-31, the OBR says.</p><p>Predictions of slowing growth were wrong, Healey says. The OBR says GDP will grow by 1.2% this year, 1% next year, 1.6% in 2028, 1.8% in 2029, 1.7% in 2030 and 1.6% in 2031. In March the OBR had predicted GDP growth of 1.1% in 2026, rising to 1.6% in 2027 and 2028, and dropping to 1.5% in 2029 and 2030.</p><p>Government debt is forecast to be 83.2% of GDP this year, 83.8% next year then falling to 83.1%, 82.3% and 81.7% in the following years.</p> <a href="https://www.theguardian.com/uk-news/2026/oct/28/budget-2026-key-points-john-healey">Continue reading...</a>
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Budget 2026: key points at a glance
<p>John Healey is announcing his financial update – here are the main points, with political analysis</p><ul><li><p><a href="https://www.theguardian.com/uk-news/live/2026/oct/28/budget-2026-latest-updates-john-healey-andy-burnham-labour-uk-politics">Budget 2026 live – latest updates</a></p></li></ul><p>John Healey starts by saying that his budget is “delivered at a time when global uncertainties and pressures are swirling worldwide and hitting people here at home”.</p><p>Healey says he will meet the fiscal rule that day-to-day spending must be covered by tax receipts, and the investment rule that government debt, defined as public sector net financial liabilities, must be falling as a percentage of GDP in the third year of the forecast.</p><p>The government will have £15bn of headroom in 2029-30 and £20bn in 2030-31, according to the Office for Budget Responsibility, the government’s forecaster.</p><p>Government borrowing will be 4.2% of GDP this year, 3.4% next year, then 2.9%, 2.1% and 1.8% by 2030-31, the OBR says.</p><p>Predictions of slowing growth were wrong, Healey says. The OBR says GDP will grow by 1.2% this year, 1% next year, 1.6% in 2028, 1.8% in 2029, 1.7% in 2030 and 1.6% in 2031. In March the OBR had predicted GDP growth of 1.1% in 2026, rising to 1.6% in 2027 and 2028, and dropping to 1.5% in 2029 and 2030.</p><p>Government debt is forecast to be 83.2% of GDP this year, 83.8% next year then falling to 83.1%, 82.3% and 81.7% in the following years.</p> <a href="https://www.theguardian.com/uk-news/2026/oct/28/budget-2026-key-points-john-healey">Continue reading...</a>