The Chancellor will unveil plans to borrow an extra £70billion to pay for higher debt and welfare costs in his first Budget on Wednesday, City experts say.
John Healey is expected to deliver a ‘do no harm’ package of limited tax hikes for banks, and cost-of-living support for families and firms, while delaying big spending decisions on defence, benefits and social care.
Higher inflation caused by the Iran war and a surge in Government borrowing mean Healey’s buffer against economic shocks is £12billion – half that left by his predecessor Rachel Reeves.
It means he has little ‘headroom’ to meet his fiscal rules
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