John Healey promises 'fresh hope for the future' as he prepares to deliver first Budget

Chancellor seeks to reassure voters and markets over cost-of-living help and bank profit raid

By LineZotpaper AI staff

Published27 October 2026

Updated28 October 2026

Read Time2 min

Sources4 outlets

Chancellor John Healey has promised "breathing space for today and fresh hope for the future" in an eve-of-Budget video, as he prepares to deliver his first Budget to the Commons on Wednesday.

In the video, Mr Healey sought to reassure both voters and financial markets, saying: "The world's a highly uncertain place. Conflicts abroad are pushing up energy prices, and the cost of living here at home, piling pressure on the families, on businesses, and on our public finances."

He said the Budget would give households "breathing space from some of the everyday costs", provide targeted support for businesses and self-employed people, and begin long-term action to bring energy costs down.

The City is concerned, however, about a planned raid on bank profits intended to fill a black hole in public spending and create headroom ahead of possible shocks in 2027. There are threats that banks could move headquarters out of London to European rivals including Hamburg and Paris.

Mr Healey is understood to want help for the poorest households with energy bills, as well as another freeze on fuel duty. He is also under pressure to fund public sector pay rises, with unions threatening strike action next year, and he acknowledged that the wars in the Middle East and Ukraine are driving up inflation and mortgage rates.

Despite claims that Labour has become "anti-business", the chancellor said he would back British businesses and entrepreneurs, while confirming a 4 per cent rise in the minimum wage. He promised to invest in technology, build more homes and shift power out of Whitehall.

In an interview with ITV, defence secretary Wes Streeting confirmed that his department will receive extra funding in the Budget as Labour aims to spend 3 per cent of GDP on defence and security by 2030, after repeated pressure from US President Donald Trump.

Mr Healey insisted the government would stick to tight fiscal rules: "We'll do all of this responsibly, sticking within tight fiscal rules, and make sure every pound is well invested."

The Chancellor became Labour's Treasury chief after resigning as defence secretary under Sir Keir Starmer, a move that helped trigger Andy Burnham's rise to prime minister, because the previous government failed to find the military funding needed.

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Analysis

Why This Matters

The Budget sets the government's fiscal direction, with a planned raid on bank profits that has unsettled the City.
Households facing high energy bills and mortgage costs are promised targeted help, including a possible fuel duty freeze.
Defence spending is set to rise toward 3 per cent of GDP by 2030, a move tied to pressure from US President Donald Trump.
What happens next: the full Budget lands in the Commons on Wednesday, followed by market and union reaction.

Background

John Healey is delivering his first Budget after becoming chancellor following Andy Burnham's appointment as prime minister. Healey resigned as defence secretary under Sir Keir Starmer over a failure to find military funding, a move that helped trigger the leadership change. The Budget comes amid global conflicts that are pushing up energy prices and inflation, and with the government facing demands for public sector pay rises and higher defence spending.

Key Perspectives

John Healey: says the Budget will deliver "breathing space for today and fresh hope for the future", help with everyday costs, back businesses and stick to tight fiscal rules. The City: is concerned about a planned raid on bank profits to fill a black hole in public spending, with banks reportedly considering moving headquarters to Hamburg or Paris. Unions: are threatening strike action next year unless public sector pay rises are properly funded. Wes Streeting: confirmed defence will receive extra funding in the Budget, toward 3 per cent of GDP by 2030. Donald Trump: has repeatedly pressed Labour to commit to spending 3 per cent of GDP on defence by 2030.

What to Watch

The Budget statement on Wednesday and the immediate reaction from financial markets to the bank profit raid.
Whether fuel duty is frozen again and what targeted energy bill help is announced.
How unions respond to public sector pay offers, with strike action threatened for next year.

Sources

Healey vows to give Britons ‘fresh hope for future’ in first Budget · The Independent UK
Healey poised to deliver ‘long grass’ Budget · City AM
Chancellor targets cost of living crisis in budget for a ‘difficult moment’ · The Guardian
Chancellor targets cost of living crisis in budget for a ‘difficult moment’ · The Guardian

Checked

12 claims in this story checked against 1 source: 10 supported.

Show each claim

SupportedHealey promised “fresh hope for the future” ahead of his first Budget.The Independent UK: “John Healey has moved to reassure voters and nervous financial markets ahead of his first Budget as chancellor with an eve-of-statement video promising “hope for the future”.”
SupportedThe Chancellor seeks to reassure voters and markets about cost-of-living help and a bank-profit raid.The Independent UK: “Mr Healey aimed to assure them that he is providing financial stability and security while also telling voters who are still uncertain about Labour that he will provide help for them with rising costs.”
SupportedHealey is preparing to deliver his first Budget to the Commons on Wednesday.The Independent UK: “At the chancellor prepares to unveil his Budget in the Commons on Wednesday”
SupportedIn his eve-of-Budget video, Healey said: “The world's a highly uncertain place. Conflicts abroad are pushing up energy prices, and the cost of living here at home, piling pressure on the families, on businesses, and on our public finances.”The Independent UK: ““The world’s a highly uncertain place. Conflicts abroad are pushing up energy prices, and the cost of living here at home – piling pressure on the families, on businesses, and on our public finances.””
SupportedThe City is concerned about a planned bank-profit raid intended to help fill a public-spending black hole and provide headroom for possible financial shocks in 2027.The Independent UK: “The City is already concerned about a planned raid on bank profits to help Mr Healey fill a black hole in public spending and provide much-needed financial headroom in anticipation of more financial shocks in 2027.”
SupportedThere are threats that banks could move their headquarters from London to European rivals including Hamburg and Paris.The Independent UK: “There are threats that the current tax situation means that banks are considering moving headquarters out of London to European rivals, including Hamburg and Paris.”
SupportedHealey is understood to want help with energy bills for the poorest households and another fuel-duty freeze.The Independent UK: “It is understood that Mr Healey wants to find money to help the poorest households with energy bills as well as freeze fuel duty again.”
SupportedHealey was under pressure to fund public-sector pay rises, with unions threatening strike action next year, and acknowledged that wars in the Middle East and Ukraine were driving up inflation and mortgage interest rates.The Independent UK: “He is under pressure to properly fund pay rises in the public sector with unions threatening strike action next year”
Partly supportedHealey confirmed a 4 per cent rise in the minimum wage.The Independent UK: “even though he is set to add to cost pressures by agreeing to a 4 per cent rise in the minimum wage.”
SupportedIn an interview with ITV, defence secretary Wes Streeting confirmed his department would receive extra Budget funding, as Labour aims to meet a 3 per cent of GDP defence-and-security target by 2030.The Independent UK: “In an interview with ITV, Wes Streeting, the defence secretary, confirmed that his department will see extra funding in the Budget as Labour aims towards meeting the 3 per cent of GDP on defence and security by 2030”
Partly supportedDonald Trump is identified as the US president who repeatedly pressured Labour over the defence spending target.The Independent UK: “after repeated pressure to do so from Donald Trump.”
SupportedHealey’s resignation as defence secretary under Sir Keir Starmer triggered events leading to Andy Burnham becoming prime minister, because the previous government failed to find the needed military funding.The Independent UK: “Mr Healey resigned as Sir Keir Starmer’s defence secretary, triggering the events which saw Mr Burnham replace him as prime minister because of a failure by the previous government to find the military funding needed.”