Chancellor John Healey admits firms are 'under pressure' and vows his Budget will look at cutting 'the cost of business'
Britain's debt interest bill hit £10.9bn in September alone — the highest for that month on record — as John Healey's fiscal headroom looks set to halve to around £12bn.John Healey, whose first Budget falls on 28 October, faces borrowing of £97.8bn in the first half of the year — £6bn above OBR forecasts — and is set to raise taxes on banks.
UK debt has smashed through £3 trillion for the first time, a week before Healey unveils his first Budget on October 28. Government borrowing overshot forecasts at £24.5 billion in September. Inflation rose to an 11-month high of 3.5%, driven partly by fuel costs linked to the Iran war. Healey is still expected to raise taxes on banks as squeezed headroom bites.
Healey praised entrepreneurs who keep going through 'sheer bloody-mindedness'.
Ex-Bank of England economist Andy Haldane expects 'a Budget for the backbenchers' rather than business.
Small firms may escape business rates if the threshold rises from £12,000 to £18,000.
