Healey and Burnham balance household support with fiscal rules ahead of 2026 Budget

Finance Minister Healey and Prime Minister Burnham face a difficult balancing act to meet household support and defence spending commitments while adhering to Labour's fiscal rules. The Office for Budget Responsibility estimates the fiscal headroom has shrunk from an initial £23.6 billion, with analysts divided on the exact figure. Options under consideration include raising a 3% surcharge on bank profits and details on the "Your First Home" scheme for first-time buyers.