UK Chancellor Healey Delivers First Budget Amid Iran War Inflation, Debt Above £3 Trillion

British Treasury chief John Healey delivers his first budget statement Wednesday, balancing Labour government spending ambitions against inflation driven to a near one-year high of 3.5% by the Iran war and Strait of Hormuz supply bottlenecks. Healey, appointed Chancellor of the Exchequer in July when Andy Burnham became prime minister, faces debt that has passed 3 trillion pounds ($4 trillion) for the first time, with 8% of government spending required to service it. The Bank of England is expected to raise interest rates soon, further increasing debt costs. The budget is expected to be relatively low-key, with bond markets sensitive to weak fiscal stories. Matthew Amis of Aberdeen Investments said a "dull budget" could be rewarded with lower borrowing costs. Healey has pledged to give businesses and families "some breathing space" on the cost of living, with revenue expected from a higher surcharge on bank profits and increased taxes on the gambling sector. His defense comments will draw particular interest after he resigned as defense secretary earlier this year in protest over insufficient funding.