Labour figures question Healey’s preparation for first UK budget

Senior Labour figures have privately questioned Chancellor John Healey’s approach to his first budget, with concerns that a lack of detail on growth, investment and taxation could unsettle markets, the Guardian reports. The concerns come as global bond markets remain volatile and energy costs rise. The yield on 30-year UK government bonds reached 6 per cent on Thursday, its highest level since 1998, while Barclays increased some mortgage rates for the second time in a week.

A senior Labour politician told the Guardian that Healey’s conference speech had not provided a clear sense of the government’s plans for growth and investment. Another Labour MP said the chancellor had gone little further on tax and spending than repeating the government’s fiscal rules. One Labour insider warned that the chancellor could face a fresh market shock on October 28 if he did not clarify his approach to taxation, spending and the government’s financial buffer.

Market movements are expected to have removed at least half of the £24bn headroom previously built up against the fiscal rules. Rebuilding that margin could require tax increases or spending reductions. Arun Advani of Warwick University said Healey’s speech had not made the direction of Treasury policy clear.

The Treasury defended the chancellor’s preparation, saying he had been involved in major conference announcements and that officials were working on details including pension reforms. Healey’s team is also using tightly controlled “black boxes” to limit leaks, following problems before earlier budgets. The budget is expected to focus on a limited set of measures, although rising energy costs have increased pressure for immediate help.

Labour figures fear that a cautious statement could fail to reassure households facing higher living costs, while longer-term proposals on social care and public ownership could dominate political attention without addressing the immediate squeeze.