- The Burnham Government's first Budget will be delivered on October 28.
- Chancellor John Healey has asked the Office for Budget Responsibility to prepare fresh economic forecasts.
- The Budget is expected to outline plans for regional devolution, defence spending and social care.
The Burnham Government will deliver its first Autumn Budget on October 28, with Chancellor John Healey expected to outline the new administration's plans for public spending, regional growth and fiscal policy.
In a letter to Parliament's Treasury Committee, Healey confirmed he had asked the Office for Budget Responsibility (OBR) to prepare updated economic and fiscal forecasts ahead of the Budget. The forecasts are expected to form the basis of the Government's spending and tax decisions.
The announcement comes just days after Healey replaced Rachel Reeves as Chancellor and takes on the challenge of balancing higher spending ambitions with maintaining confidence in the financial markets.
Balancing spending with fiscal discipline
Healey said the Government would continue to follow its fiscal rules despite increasing demands for investment in areas such as defence and social care.
"Fiscal credibility is the bedrock of economic stability and national security," Healey said, as quoted in a news report. He added that the Government would maintain a financial buffer to protect the economy against uncertainty and instability in the Middle East.
The Chancellor also indicated that the Budget would support the Government's wider ambition of shifting "money and power out of Westminster" and into communities across Britain.
The Budget is expected to build on the Government's plans for greater regional devolution.
Earlier, Prime Minister Andy Burnham announced that elected mayors in England will be allowed to retain and spend business rates collected in their regions to support local economic growth.
Burnham also said local leaders would eventually gain powers over income tax, with Healey expected to publish a white paper and a roadmap for further fiscal devolution alongside the Autumn Budget.
The October statement will be closely watched by businesses, investors and local authorities for details on taxation, public spending and the Government's longer-term strategy for economic growth.
