- Published
Chancellor John Healey and Prime Minister Andy Burnham have written a joint letter to cabinet ministers telling them that they must stick within their existing spending limits while funding new pledges.
asserted
they → publish → pledges
After taking office, Burnham announced a host of new cost-of-living policies, including scrapping VAT on domestic electricity bills, reducing business rates for pubs and capping bus fares in England.
asserted
Burnham → take → England
Burnham and Healey are determined to stick within the fiscal rules set out by their predecessors Sir Keir Starmer and Rachel Reeves, treasury sources have told the BBC.
asserted
sources → determine → BBC
Healey's first Budget will be on 28 October and will be "built on fiscal discipline", the chancellor said.
asserted
chancellor → build → discipline
Healey said the budget would "meet our fiscal rules" and "give businesses and families some of the stability they need to plan for the future".
asserted
they → say → future
A report in the Times says the joint letter told ministers they must work "within the budgets they have already got" even while "pay[ing] for new things they want to do this year and next".
asserted
they → say → things
While the ongoing war in Iran is pushing up inflation and borrowing costs, senior Treasury sources confirmed that the government was determined to stay "well within the fiscal rules" inherited from Sir Keir and Reeves.
asserted
government → push → Keir
But Burnham has said his government will stick to Labour's fiscal rules on spending and borrowing as well as the party's 2024 manifesto pledges not to increase income tax, VAT or National Insurance contributions.
He also said he will honour the fiscal rules imposed by Reeves, which include a pledge to balance day-to-day spending with tax revenues by the end of the decade.
asserted
which → say → decade
An influential think tank said earlier this week that the prime minister only had a small margin of error to do this and that Healey may have to cut spending or raise taxes to meet Burnham's policy priorities, such as extra defence spending and better social care.
uncertain
Healey → say → spending
Healey was defence secretary under Sir Keir but resigned after a row over defence spending commitments, saying he was "certain" that Britain should lift its spending to 3% by 2030.
asserted
Britain → resign → 2030
Questioned about funding on Thursday, Burnham's Defence Secretary Wes Streeting repeatedly refused to commit to that target.
asserted
Secretary → question → target
"Before we set out specific spending commitments, we will also set out how we pay for them at the same time," he said.
asserted
he → set → time
Reeves left a £22bn buffer in her last Budget, but persistent inflation due to the Iran war could have eroded that.
uncertain
inflation → leave → that
On Friday, the PM said he would give all mayors of city regions in England a share of income tax revenue for the first time, as part of his efforts to move power away from Westminster.
asserted
he → say → Westminster
Reeves had previously said that regional mayors could be given control of some tax revenue to spend on their local priorities.
uncertain
mayors → say → priorities
Labour pledged to devolve more powers to local councils and mayors in areas such as housing and transport as part of its 2024 election manifesto.
asserted
Labour → pledge → manifesto
More details of Burnham's plan are expected to be announced in the Budget, but the government said the rate of income tax will not change as a direct result of the reforms.
asserted
rate → expect → reforms
AJ Bell public policy director Tom Selby said Healey "doesn't have the luxury of pointing the finger of blame at the last administration".
asserted
Healey → say → administration
"Healey will likely spend a chunk of his time leafing through the thesaurus looking for new ways to rephrase the 'tough choices' message of his predecessor," he said.
asserted
he → spend → predecessor
Shadow chancellor Sir Mel Stride said the announcement of the budget date meant "89 more days of unfunded spending commitments and damaging tax speculation until we get some details".
asserted
we → say → details
"Eighty-nine more days for Brits to wait before they know how much their taxes are going to go up to fund Burnham's spending addiction," he said.
asserted
he → wait → addiction
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asserted
It → deliver → inbox
- Published
Chancellor John Healey and Prime Minister Andy Burnham have written a joint letter to cabinet ministers telling them that they must stick within their existing spending limits while funding new pledges.
asserted
they → publish → pledges
After taking office, Burnham announced a host of new cost-of-living policies, including scrapping VAT on domestic electricity bills, reducing business rates for pubs and capping bus fares in England.
asserted
Burnham → take → England
Burnham and Healey are determined to stick within the fiscal rules set out by their predecessors Sir Keir Starmer and Rachel Reeves, treasury sources have told the BBC.
asserted
sources → determine → BBC
Healey's first Budget will be on 28 October and will be "built on fiscal discipline", the chancellor said.
asserted
chancellor → build → discipline
Healey said the budget would "meet our fiscal rules" and "give businesses and families some of the stability they need to plan for the future".
asserted
they → say → future
A report in the Times says the joint letter told ministers they must work "within the budgets they have already got" even while "pay[ing] for new things they want to do this year and next".
asserted
they → say → things
While the ongoing war in Iran is pushing up inflation and borrowing costs, senior Treasury sources confirmed that the government was determined to stay "well within the fiscal rules" inherited from Sir Keir and Reeves.
asserted
government → push → Keir
But Burnham has said his government will stick to Labour's fiscal rules on spending and borrowing as well as the party's 2024 manifesto pledges not to increase income tax, VAT or National Insurance contributions.
He also said he will honour the fiscal rules imposed by Reeves, which include a pledge to balance day-to-day spending with tax revenues by the end of the decade.
asserted
which → say → decade
An influential think tank said earlier this week that the prime minister only had a small margin of error to do this and that Healey may have to cut spending or raise taxes to meet Burnham's policy priorities, such as extra defence spending and better social care.
uncertain
Healey → say → spending
Healey was defence secretary under Sir Keir but resigned after a row over defence spending commitments, saying he was "certain" that Britain should lift its spending to 3% by 2030.
asserted
Britain → resign → 2030
Questioned about funding on Thursday, Burnham's Defence Secretary Wes Streeting repeatedly refused to commit to that target.
asserted
Secretary → question → target
"Before we set out specific spending commitments, we will also set out how we pay for them at the same time," he said.
asserted
he → set → time
Reeves left a £22bn buffer in her last Budget, but persistent inflation due to the Iran war could have eroded that.
uncertain
inflation → leave → that
On Friday, the PM said he would give all mayors of city regions in England a share of income tax revenue for the first time, as part of his efforts to move power away from Westminster.
asserted
he → say → Westminster
Reeves had previously said that regional mayors could be given control of some tax revenue to spend on their local priorities.
uncertain
mayors → say → priorities
Labour pledged to devolve more powers to local councils and mayors in areas such as housing and transport as part of its 2024 election manifesto.
asserted
Labour → pledge → manifesto
More details of Burnham's plan are expected to be announced in the Budget, but the government said the rate of income tax will not change as a direct result of the reforms.
asserted
rate → expect → reforms
AJ Bell public policy director Tom Selby said Healey "doesn't have the luxury of pointing the finger of blame at the last administration".
asserted
Healey → say → administration
…and 4 more, not listed.
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