Healey warns NHS and nursing pay rises may not be funded as 'tough' Budget looms in two weeks

Chancellor John Healey has signalled that government departments — including the NHS — will not receive extra cash to cover pay rises for doctors and nurses, telling reporters from the IMF meeting in Bangkok that ministers must "manage with the budgets we've got." Energy bill help will be "targeted and temporary," with only the worst-off households likely to benefit ahead of a forecast 20 per cent rise in January. Healey is framing the October 28 Budget around offering Britain "breathing space" while holding firm on fiscal rules inherited from Rachel Reeves.

Energy bills have already risen 4 per cent from October 1 and forecasters warn of a further £300 jump in January.

The CBI is urging Healey not to hike taxes on banks or businesses, warning further costs would choke investment and jobs.

The IPPR, influential in Labour circles, wants Healey to raise an extra £16 billion — including a windfall tax on commercial banks — to rebuild a fiscal buffer it says has shrunk by up to £15 billion since spring.