Chancellor Healy, unveiling Andy Burnham’s first Labour government budget,
pledged fiscal discipline while tapping last year’s fiscal headroom to blunt the
impact of a US–Iran war, saying the conflict has pushed up inflation and
increased costs for households and businesses. He forecast fiscal headroom would
fall to £15bn in 2029/30 — broadly in line with economists’ expectations —
before recovering to £22bn in 2030/31, and said the buffer would be used now and
rebuilt when conditions allow. The budget eases household energy bills and
raises revenue via a bank tax. Gilts ticked higher during Healy’s speech; the
10-year gilt yield fell 2bps to 5.32%. GBP/EUR rose about 0.2% to 0.8377.
