Chancellor John Healey will deliver his first Budget on Wednesday 28 October 2026, setting out the Government's tax and spending plans. He will address MPs after Prime Minister's Questions, in a speech expected to last about an hour, and the Treasury will publish the full Budget documents once he sits down.

It is Healey's first Budget since becoming Chancellor in July. The Office for Budget Responsibility (OBR) will release its updated five-year economic and fiscal outlook the same afternoon.

The numbers squeezing the Chancellor

The Budget arrives with borrowing costs high and the fiscal rules binding. The OBR estimated in March that the Government's main fiscal rule would be met with £23.6 billion to spare, but forecasters now put that cushion far lower: around £12 billion according to KPMG and around £20 billion according to the Institute for Fiscal Studies. A Reuters poll put the median forecast at £10–12 billion.

Labour's pre-election promise not to increase income tax, National Insurance or VAT narrows Healey's options, and he has declined to exclude tax rises altogether. Reports have suggested higher taxes on banks, but nothing of that kind is confirmed until the Chancellor announces it.

What is already confirmed

Already confirmed is the Your First Home scheme in England, which the Government says will be confirmed in the Budget. Under it, eligible first-time buyers would need a deposit of just 2.5% of a new-build home's value, backed by a government equity loan of up to 20%, interest-free for five years, with properties worth up to £600,000 eligible. A household income cap and local price caps will apply, and developers signing up must contribute to the scheme's costs. Full details are due in the Budget itself.

Source: Reuters