In his first budget announcement, Chancellor John Healey has pledged to provide what he termed “breathing space” for both British consumers and businesses. Speaking from the International Monetary Fund meetings in Bangkok, Healey acknowledged the ongoing pressure of rising costs facing the public.

While the Chancellor intends to introduce relief measures, he maintained that these actions will remain strictly within the boundaries of the Labour government’s established fiscal rules. Healey described the upcoming budget as a dual-purpose plan: one that offers immediate relief while simultaneously reinforcing the resilience and future strength of the national economy.

Although specific details of the new measures remain limited, the government has already implemented a reduction in VAT on electricity bills as part of its broader strategy to manage cost-of-living challenges. Healey’s comments suggest a cautious approach, aiming to support the economy without abandoning the fiscal discipline promised during the election campaign. The full scope of the budget is expected to be unveiled in a fortnight.