Politics · 21 July 2026
Why new Chancellor has immediate fiscal challenges
John Healey, the new Chancellor, has immediate fiscal challenges because a key government borrowing target was missed on his first day. The current budget deficit, which funds day-to-day public spending, was £11.8 billion in June, exceeding forecasts. The missed target makes it harder to meet fiscal rules requiring a budget surplus over three years, especially with pressures like defence spending and cost of living demands.
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