Back to today’s briefing

Story perspectives

Healey pledges no income tax, VAT rises in budget

9/8/2026

20 3 Full Breakdown

Summary

Story summary

Chancellor John Healey said growth is central to challenges in his Coventry speech.
He pledged Labour’s manifesto promise not to raise income tax, national insurance or VAT.
Healey warned that 18-year-high global bond yields raise borrowing costs and strain finances.
He said the 28 October budget will focus on regional devolution and infrastructure spending.
Healey urged welfare cuts and a youth-unemployment review led by Alan Milburn.

History

Historical Context

After the 2008 global financial crisis prompted the G-20 Washington summit in November and a UK bank rescue that saw the Treasury inject £37 billion into RBS, Lloyds and HBOS in October 2008, bond yields surged to multi-year highs. In 2024 Chancellor John Healey invoked that crisis-era caution, pledging no income-tax rise while warning that 18-year-high yields echo the 2008 strain.

1 of 2

Story summary

Chancellor John Healey said growth is central to challenges in his Coventry speech.
He pledged Labour’s manifesto promise not to raise income tax, national insurance or VAT.
Healey warned that 18-year-high global bond yields raise borrowing costs and strain finances.
He said the 28 October budget will focus on regional devolution and infrastructure spending.
Healey urged welfare cuts and a youth-unemployment review led by Alan Milburn.

1 / 2