Chancellor John Healey faces fresh pressure as £3.5bn public finances blow fuels fears of tax rises

From the Newshound archive · first published 24 September 2026.

Chancellor John Healey faces mounting calls to use the forthcoming Budget to steady household nerves after a £3.5bn public finances shortfall reignited fears of tax rises, especially in London. Consumer confidence has dropped sharply following four consecutive months of gains, with the three-month economic outlook falling to minus 34 from minus 28 in August, according to the British Retail Consortium.

The personal finances measure worsened to minus 15 from minus nine, with women seeing the sharpest deterioration.

Key housing market indicators are also flashing red, with inflation at 3.1% pushing the Bank of England close to a base rate rise from its current 3.75%.