Lates News

UK Prime Minister Burnham said the government's upcoming budget will be "challenging," a shift from the optimistic and growth-focused tone emphasized early in his tenure. Burnham and Chancellor Healey had previously hoped to announce a relatively moderate budget on October 28, focusing on easing cost-of-living pressures, reducing business costs, and advancing local devolution. But recent deterioration in the global market environment, especially the Middle East conflict driving up energy prices and exacerbating inflation, has changed the government's messaging. Burnham said the global economic environment is becoming more difficult, and the government will make tough decisions to ensure the economy remains stable. Previously, UK inflation rose to a five-month high in August, and the market is also watching the Bank of England's subsequent interest rate decisions. At the same time, the Iran war and the conflict between Saudi Arabia and Yemen's Houthi armed group have pushed up energy prices and increased the UK government's borrowing costs, further expanding fiscal pressure. Economists had previously estimated that rising UK gilt yields could reduce the government's 23.6 billion pounds of buffer space for meeting fiscal rules by about 12 billion pounds. Healey said that despite global uncertainty, the UK economy has shown resilience, and the government will continue to promote economic growth.