Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestyleChancellor John Healey has informed cabinet ministers that no new funding is available for Prime Minister Andy Burnham's policy pledges, requiring departments to reprioritise existing budgets. This directive comes ahead of Healey's first Budget on 28 October, which he states will be founded on "fiscal discipline". Burnham's government has made several costly announcements, including VAT cuts on electricity bills and reduced business rates for pubs, alongside plans for radical devolution and expanded technical training. Healey faces significant challenges in funding these initiatives and increased defence spending, particularly given warnings that the Iran war will further strain public finances. Experts suggest Healey may need to consider tax rises or cuts to welfare and pensions, potentially conflicting with Labour's manifesto pledges, to meet fiscal rules amidst economic pressures. In fullJohn Healey tells minsters to prepare for budget cuts to finance new Burnham pledgesMore bulletinsThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
Healey warns ministers of spending cuts to fund Burnham’s new pledges
Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestyleChancellor John Healey has informed cabinet ministers that no new funding is available for Prime Minister Andy Burnham's policy pledges, requiring departments to reprioritise existing budgets. This directive comes ahead of Healey's first Budget on 28 October, which he states will be founded on "fiscal discipline". Burnham's government has made several costly announcements, including VAT cuts on electricity bills and reduced business rates for pubs, alongside plans for radical devolution and expanded technical training. Healey faces significant challenges in funding these initiatives and increased defence spending, particularly given warnings that the Iran war will further strain public finances. Experts suggest Healey may need to consider tax rises or cuts to welfare and pensions, potentially conflicting with Labour's manifesto pledges, to meet fiscal rules amidst economic pressures. In fullJohn Healey tells minsters to prepare for budget cuts to finance new Burnham pledgesMore bulletinsThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
