UK Chancellor John Healey commits to fiscal discipline in upcoming budget

UK Chancellor John Healey has reaffirmed a commitment to fiscal discipline, stating that the government will not abandon its goals to reduce public borrowing. Speaking at the IMF annual meetings in Bangkok, Healey noted that the government aims to maintain fiscal stability while providing targeted support to households and businesses in the upcoming budget to be announced on October 28.

The International Monetary Fund (IMF) has expressed support for the UK's current economic trajectory, noting progress in reducing public debt. The IMF has advised the UK to maintain its existing fiscal strategy rather than attempting to close the deficit more aggressively.

Reports indicate that Healey intends to finance new spending initiatives, including measures to combat the cost of living, without increasing additional borrowing. The budget is expected to address rising energy costs during winter months and may include the cancellation of planned fuel tax increases in January and March. The government's fiscal rules require daily public spending to be covered by tax revenues and for the public debt-to-GDP ratio to decline.