RismadarVoice Reporters
September 5, 2026
UK Chancellor John Healey has warned that Britain and its allies are facing a more uncertain and dangerous global environment, as the economic impact of the US-Israel war with Iran puts additional pressure on the country’s finances.
Healey, speaking to the Financial Times, said the conflict in the Middle East was already affecting key economic indicators, including inflation, economic growth and borrowing costs.
“What’s happening in the Middle East is hitting inflation, it’s hitting growth, it’s hitting borrowing costs,” Healey said, describing the situation as part of a “more dangerous world” that Britain must be prepared to confront.
The warning comes ahead of what is expected to be a challenging budget, with economists calling for further tax increases to give the government greater fiscal flexibility.
The calls follow significant tax rises introduced last year under Healey’s predecessor, Rachel Reeves.
Healey said he and Prime Minister Andy Burnham would work to create a financial buffer capable of protecting the economy against further global uncertainty.
