Chancellor John Healey has announced the date of his first Budget will be Wednesday, 28 October.

In a video message,  he said: “This will be a Budget that moves money and power out of Westminster, and into every postcode around Britain.

“It will be built on fiscal discipline. It will meet our fiscal rules. It’ll give businesses and families some of the stability they need to plan for the future. Now, let’s get on with the job.”

Prime Minister Andy Burnham has said his government will stick to Labour’s fiscal rules on spending and borrowing as well as the party’s 2024 manifesto pledges not to increase income tax, VAT or national insurance contributions.

Economists say the government has only a small margin of error for hitting that target, and some of Burnham’s policy priorities – such as extra defence spending and better social care – will put more strain on the public finances.

Burnham has also announced a host of new cost-of-living policies since taking office earlier this month, including scrapping of VAT from domestic electricity bills.

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