- Chancellor John Healey has warned of a challenging autumn Budget on 28 October as the UK economy faces rising borrowing costs and inflationary pressures driven by US president Donald Trump's military action in the Middle East.
- The ongoing global turmoil threatens to constrain Prime Minister Andy Burnham's ambitions to tackle the cost-of-living crisis and deliver his broader government spending plans.
- Speaking to the Financial Times, Healey insisted he and the Prime Minister are in lockstep to meet Treasury fiscal rules by building a resilient financial buffer against global uncertainty.
- Facing criticism from the Conservatives over defence spending, Healey declined to recommit to allocating 3% of GDP by 2030 but maintained the UK would hit a 3.5% NATO target by 2035.
- Ahead of a key speech on Monday, the Chancellor announced revisions to Treasury rules that lower the discount rate from 3.5% to 3% to make long-term regional infrastructure projects easier to fund.
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