LONDON, Oct 26 — British Prime Minister Andy Burnham’s new government unveils its first budget Wednesday, testing a commitment to ease the cost of living and ramp up defence spending with little financial room for manoeuvre.
It could prove to be a tall order for finance minister John Healey as rising inflation and borrowing costs — largely a consequence of the US-Iran war — increase the government’s debt pile and heap pressure on businesses and individuals.
“This is a budget that is about breathing space for people, for businesses too, and that helps bring a bit of hope,” Burnham, who replaced Keir Starmer as PM in July with their Labour party down in the polls, said Monday.
Speaking to the Good Morning Britain television programme, he added that the latest annual tax and spending plans will set out “the path to meet our Nato commitments” under a “funded” defence plan.
