Chancellor John Healey delivers his first Budget on Wednesday 28 October 2026, after Prime Minister's Questions, in a speech expected to last about an hour. Ahead of the set-piece, reporting of what to expect points to measures on defence, housing, devolution and rough sleeping alongside the AI and wage announcements already covered this week — all subject to confirmation in the speech itself.

Defence, housing and devolution

Government spending on defence is reported to rise to a 2.7% share of the economy by 2027, with the path to NATO's 3.5% target by 2035 to be set out at next year's spending review. More than £1 billion is reported for social and affordable housing, an initial £285 million for mayors and regional leaders in England under devolution plans, and a £7 million fund for a feasibility study into a possible future Olympics and Paralympics bid in northern England.

Rough sleeping and the fiscal backdrop

A further £432 million is reported for the rough sleeping programme. The wider backdrop is tight: the Office for Budget Responsibility estimated in March that the day-to-day spending rule would be met with £23.6 billion to spare, but that cushion is now expected to have shrunk — to £12 billion according to KPMG or £20 billion according to the Institute for Fiscal Studies. Healey has declined to exclude tax rises, despite Labour's pre-election promise not to increase income tax, National Insurance or VAT.

Sources: Radio NewsHub Budget preview; BBC explainer via World Right Now. All measures are as reported ahead of the Budget, not confirmed announcements.