The higher-than-expected budget deficit arrived as Chancellor John Healey prepared for his inaugural budget. Ahead of the fiscal statement, Healey indicated an intention to adhere to existing fiscal rules while navigating a slimmer financial buffer than previously established by his predecessor, Rachel Reeves.
Following the data release, Chancellor Healey subsequently delivered his budget announcement. The measures included a 3.9% pay increase for 18-to-20-year-olds earning the minimum wage starting next April, alongside adjustments maintaining age band distinctions, and assistance targeted at first-time homebuyers. The budget package also directed government departments to implement 1% cuts to help fund defence.
