The john healey budget lands a week after 20 October 2026, the chancellor's first since taking the job, and the Conservatives are using the final days to frame it. Kemi Badenoch will argue that without government spending cuts on the scale her party has set out, the statement will leave voters worse off than the two tax-raising budgets delivered by Rachel Reeves.

Badenoch's warning ahead of the budget

In a speech and press conference timed for the morning before the budget, the Conservative leader will claim Healey's budget will be even worse than the two delivered by Reeves, which raised taxes by £40bn and £26bn. Her party has announced plans to cut government spending by £70bn a year, and Badenoch will say Healey should follow that course or else preside over more damage than his predecessor managed.

She has prepared lines aimed directly at the chancellor's reputation for caution:

But she will warn that restraint is no protection: "I'm worried that next week John Healey will deliver a budget that does more damage to our country than either of Rachel Reeves' budgets did".

Badenoch will also dismiss attempts to lower expectations before the statement. "We are being told that next week's budget is going to be 'nothing to see here'", she will say, calling that "code in Whitehall for a budget that tries to do as little as possible".

The country, she will argue, cannot take that route: "Britain cannot afford to do as little as possible. Problems have caught up with us that we can no longer afford to run away from". Her answer is fiscal discipline: "First and foremost, that means living within our means".

What is in the budget, per the briefings

While Badenoch speaks, the reported contents of the uk budget 2026 are already circulating. According to a Times story by Steven Swinford, Healey has decided against raising capital gains tax in the budget. Overnight, journalists were assured through background briefings that the Times' story is accurate.

The same account holds that:

• •The biggest revenue raiser in the budget will be a tax raid on banks, funding a targeted and temporary cost-of-living support package.
• •Fiscal headroom - the buffer against future events - will be reduced from £23bn to around £15bn.
• •Capital gains tax will not rise.

Burnham allies had pressed for a tax rise

The decision to leave capital gains tax alone came after an internal fight. Senior allies of Andy Burnham, including several cabinet ministers, had been pressing for a rise in capital gains tax on second homes, shares and other assets.

The chancellor ruled the option out after warnings that it could ultimately cost the government money - if wealthy individuals left the UK, or simply deferred selling their assets.

Tuesday's political timetable

The budget run-in collides with a crowded political day on 20 October 2026:

• •Morning: Andy Burnham chairs cabinet.
• •10am: Kemi Badenoch gives a speech and holds a press conference.
• •11.30am: Yvette Cooper, the health secretary, takes questions in the Commons.
• •Noon: Heather Hallett publishes the latest report from the Covid inquiry, covering care homes.
• •After 12.30pm: MPs resume their debate on the Northern Ireland Troubles bill.
• •2pm: Nigel Farage, the Reform UK leader, speaks at a rally in Plymouth.
• •2.30pm: Jonathan Reynolds, the business secretary, gives evidence to the Commons business committee.

Healey delivers his first budget a week after 20 October 2026; Badenoch sets out her case at 10am that morning, seven days before the statement.