The Aporia
The Aporia
Williams, H. (2026, September 21). Chancellor’s headroom ‘to halve because of Iran war inflation and weak growth’. Evening Standard. https://www.standard.co.uk/business/business-news/john-healey-kpmg-iran-budget-b1297733.html
Williams, Holly. “Chancellor’s headroom ‘to halve because of Iran war inflation and weak growth’.” Evening Standard, 21 Sept. 2026, https://www.standard.co.uk/business/business-news/john-healey-kpmg-iran-budget-b1297733.html.
Williams, Holly. “Chancellor’s headroom ‘to halve because of Iran war inflation and weak growth’.” Evening Standard, September 21, 2026. https://www.standard.co.uk/business/business-news/john-healey-kpmg-iran-budget-b1297733.html.
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Chancellor John Healey will face pressure to raise taxes or cut spending at next month’s Budget due to soaring borrowing costs and weaker growth, according to a new KPMG report. The economic outlook estimates that £12 billion in fiscal headroom will be available in the autumn, down from £23.6 billion at the time of the spring forecast. Rising borrowing costs after the Iran war have already cut about £9 billion off the headroom, with expected OBR downgrades likely to reduce it by another £2 billion. KPMG warns that this situation will limit Mr. Healey’s ability to provide support for growth or address cost-of-living issues when presenting the Budget next month. Restoring previous levels of fiscal headroom could require tax increases or spending cuts, according to the report.
