Budget week is upon us

Good morning,

Budget week is upon us, and market watchers will be looking to any briefings being made ahead of John Healey’s first fiscal event on Wednesday. Over the weekend, there were reports that he is looking to unveil billions in new defence investment - a particular political pressure point for a Chancellor who resigned as defence secretary back in June over a lack of defence spending.

Our politics and economics reporter Mauricio Alencar has a feature looking at the tough choices facing Healey, constrained by bleak economic and geopolitical turmoil. He’s put together four charts that illustrate the dilemma for Labour.

So, here’s everything you need to know this morning. We’ll be back in your inbox at noon with Midday Markets.

Matt

John Healey faces several tests in delivering a Budget that keeps the UK economy on course to grow. Mauricio Alencar looks at the questions he will have to answer at the despatch box.

Investors will be on alert following Friday’s surge in oil prices, which came amid rising speculation that a fresh wave of fighting could break out between the US and Iran.

The funding, due to be confirmed in Wednesday’s Budget, will take the government’s 10-year social and affordable housing programme beyond £40bn, alongside new borrowing powers for councils and regional mayors.

But figures from the National House Building Council (NHBC), released on Monday, show registrations for new homes fell 13 per cent in the third quarter of 2026 compared with a year earlier.

The lab will use AI to detect and monitor biological threats, bringing together some of the world’s largest AI developers as ministers seek to strengthen Britain’s defences.

OpenAI and Anthropic will provide up to £200m in AI model credits, giving researchers access to their technology, while Google’s Deepmind and London-based life sciences startup Basecamp Research will support the initiative.

Uzbekistan is a pinnacle of the Silk Road but remains fairly undiscovered. Hannah Copeland went in search of childhood fantasies and got lost in vibrant bazaars.

Clubs are still reckoning with the impact of the previous new measures in recent Budget announcements, with even more shortly on their way. At a time when the books of England’s biggest clubs are under the microscope, the Chancellor’s announcements could provide further headaches. 

Andy Burnham wants to undo Brexit because he’s given on the supply side reforms Britain needs for growth, says Joseph Dinnage.

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