Iran War Threatens Healey's UK Budget Plans, Think Tank Warns

3-line summary

• The price spike from the US-Israel war in Iran poses a major challenge for UK Chancellor John Healey as he prepares his first Budget, the Institute for Fiscal Studies (IFS) warned, according to the BBC. Higher-than-expected inflation could force Healey to choose between spending cuts, tax rises, or both.
• IFS director Helen Miller said "a 'steady-as-she-goes' Budget is not an option," warning against penciling in spending cuts the government has no intention of delivering, which "would make the Budget a work of fiction." The Budget speech is scheduled for October 28.
• Healey said the conflicts in the Middle East and Europe are "hitting countries worldwide, leading to higher prices at the pumps and more expensive mortgages," and that his Budget will emphasize "fiscal discipline." The wars have also driven up the UK's government debt interest payments.

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