Story perspectives

Healey’s first UK Budget requires £35B tax hikes

By Drooid · Oct 14, 2026, 10:07 PM UTC · How we work

Summary

Story summary

Chancellor John Healey will deliver his first UK Budget on 28 October 2026.
The Institute for Fiscal Studies says Healey must raise about £35 billion through taxes or benefit cuts.
The Treasury plans to require online marketplaces to collect VAT from sellers above £90,000, generating up to £1 billion.
The IMF urged Healey to maintain fiscal consolidation and aim for defence spending of 3 % of GDP by 2030.

History

Historical Context

After the 2010 coalition under Chancellor George Osborne introduced a £110 billion austerity plan to erase the structural deficit and cut debt, the Office for Budget Responsibility recorded the deficit at 10.2 % of GDP. The 2026 budget by Chancellor Jeremy Healey repeats that approach, proposing a £35 billion tax rise and new e-commerce VAT rules to fund the IMF-advised 3 % defence target.

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Story summary

Chancellor John Healey will deliver his first UK Budget on 28 October 2026.
The Institute for Fiscal Studies says Healey must raise about £35 billion through taxes or benefit cuts.
The Treasury plans to require online marketplaces to collect VAT from sellers above £90,000, generating up to £1 billion.
The IMF urged Healey to maintain fiscal consolidation and aim for defence spending of 3 % of GDP by 2030.

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