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UK Prime Minister says October budget will be challenging, government plans to make tough decisions

UK Prime Minister says October budget will be challenging, government plans to make tough decisions

智通财经智通财经2026/09/16 17:41
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The UK Prime Minister Burnham stated that the government’s upcoming budget will be “challenging,” marking a shift from the optimism and growth-focused tone he emphasized at the start of his term. Previously, Burnham and Chancellor Healey hoped to present a relatively moderate budget on October 28, focusing on easing cost of living pressures, reducing business costs, and advancing local power devolution. However, the recent deterioration of the global market environment—especially the Middle East conflict driving up energy prices and intensifying inflation—has altered the government’s position. Burnham indicated that the global economic environment is becoming more difficult, and the government will make tough decisions to ensure economic stability. Earlier, UK inflation in August rose to a five-month high, and the market is also paying attention to the Bank of England's upcoming interest rate decisions. Meanwhile, the war in Iran and the conflict between Saudi Arabia and Yemen’s Houthi forces have led to rising energy prices and increased the cost of government borrowing in the UK, further adding to fiscal pressure. Economists previously estimated that rising UK government bond yields could reduce the government’s £2.36 billion fiscal rule safety buffer by around £1.2 billion. Healey stated that despite global uncertainty, the UK economy continues to demonstrate resilience, and the government will keep promoting economic growth.
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