UK Budget & Fiscal Tightening
UK Chancellor Healey delivered a Budget hitting banks and savers with tax rises, framed as a Budget 'for working people,' while also announcing greater fiscal devolution to local leaders through business rates and income tax sharing.
What we know
@FT reports Chancellor Healey's Budget raises taxes on banks and savers. @FT adds that by decade's end local leaders will retain 100% of business rates, and from 2028 a share of income tax receipts will flow to mayors — a significant devolution of fiscal power. UK gilt markets reacted positively: An account on X reported 30Y gilt yields falling 5bps to a day low of 5.70%. The UK DMO also announced a £250M T-bill collateral pool.
How the story developed
UK Chancellor Healey delivered a Budget hitting banks and savers with tax rises, framed as a Budget 'for working people,' while also announcing greater fiscal devolution to local leaders through business rates and income tax sharing.
UK Chancellor John Healey delivered a sweeping Budget raising taxes on the wealthy and banks, expanding housing and defense commitments, and modifying pensions — with markets reacting positively to bank tax relief being smaller than feared.
UK Chancellor John Healey delivered a budget maintaining fiscal headroom of £15B, raising the bank surcharge to 6%, increasing the living wage 3.9%, and cutting the 2027 GDP growth outlook to 1% — with explicit mention that headroom helps cushion the economic impact of the Iran war.
Sources
“Healey hits banks and savers with tax rises in Budget 'for working people'”
View post →“Local leaders in the UK will retain 100% of business rates by end of decade; income tax share to mayors from 2028”
View post →By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.