UK Chancellor Healey to Deliver Budget Amid Rising Debt, Inflation and Bank Tax Plan

Chancellor John Healey will present his maiden Budget next week under severe economic strain, with borrowing costs spiraling, debt exceeding £3 trillion in September and inflation at 3.5pc year-on-year — the steepest rise of 2026. The Bank of England expects Ofgem's energy price cap to jump nearly a quarter in January, pushing the typical annual household bill above £2,000 for the first time since 2023, while the base rate is forecast to rise to 4pc the week after the Budget. Mortgage rates are climbing, growth slowed in August, and stamp duty revenue of £20bn a year is at risk from housing market paralysis. The centerpiece measure is a £2bn raid on banks, raising the corporation surcharge on profits from 3pc to 8pc — the highest corporation tax burden in Britain in 30 years. The CBI warns the levy will hurt growth, and former Bank of England chief economist Andy Haldane says it would "repel" investors.