UK budget: Healey sets out response to 'global economic storms'

Healey Sets Out UK Budget to Tackle Global Economic Storms and Boost Growth

Key Highlights from John Healey's First UK Budget

LONDON, Oct 28 (Reuters) - British finance minister John Healey on Wednesday started to set out the government's latest tax and spending measures in his first budget, seeking to boost economic growth while maintaining control of the public finances.

Healey's Opening Remarks

Below are quotes from Healey:

HEALEY'S FIRST WORDS

"This is a budget for the working people of Britain, for British businesses, big and small, delivered at a time when global uncertainties and pressures are swirling worldwide and hitting people here at home. A budget built on fiscal discipline, which matches immediate action today, with clear direction for the future."

Addressing Global Economic Challenges

GLOBAL ECONOMIC STORMS

"Analysts like to speak of economic headwinds. But what we face today are global economic storms with trade tensions acting as a drag on global growth, and (Russian President Vladimir) Putin's illegal invasion of Ukraine approaching the end of its fifth year."

"The OBR sets out that the war in the Middle East is a key driver affecting today's forecasts. And this government continues to work with our allies to end the conflict and restore shipping through the Strait of Hormuz."

"In the budget today, I have chosen to use some of the headroom established last year to absorb the impact of the Iran war to protect the economy, and to protect family budgets."

Fiscal Strategy and Borrowing

FISCAL HEADROOM AND BORROWING

"The OBR confirms today that headroom against the stability rule is £15 billion in 2029/30, before rising to £22 billion in 2030/31."

Maintaining a Financial Buffer

"That's what a buffer is for. Use it when you need it. Rebuild it when you can. And so, despite the global challenges, this budget puts us on track to eliminate the current budget deficit and get Britain’s finances into the black within 3 years."

"In today's forecast, borrowing falls to 4.2% this year, 3.4% next year, 2.9% in 2028/29, 2.1% in 2029/30, and 1.8% in 2030/31 and 2031/32."

DEBT

"Our debt as a percentage of GDP is 83.2% this year, 83.8% next year and in 2028/29, Before falling to 83.1% in 2029/30, 82.3% in 2030/31 and 81.7% in 2031/32."

Economic Growth Outlook

ECONOMIC GROWTH

"Three months ago, the Bank of England upgraded their forecasts for growth this year. Two weeks ago, the IMF did the same."

"And today, the OBR has upgraded its forecast too – to 1.2% this year. Followed by 1% next year, 1.6% in 2028, 1.8% in 2029, 1.7% in 2030 and 1.6% in 2031."

"Yes, there are real challenges ahead, but Britain has beaten the forecasts this year, and with the action I'm taking today, I believe Britain can beat them again."

(Compiled by Sam Tabahriti and Kate Holton)