Autumn Budget 2026: ‘Steady as she goes’ is no good when the economy’s adrift

John Healey avoided several icebergs but there are nasty storms on the horizon, says William Nixon The Chancellor opened his speech by claiming the Budget would help steer the UK’s economy through global economic storms . He can be commended for avoiding the twin icebergs of major new tax hikes and pre-Budget speculation that sank Rachel Reeves’ economic expeditions. But the Chancellor’s ‘steady as she goes’ strategy is simply not sustainable when the economy is adrift at sea. The nasty ‘storm’ on the horizon – involving both a major energy price shock and multiple rate hikes from the Bank of England – is no excuse for avoiding a fundamental course correction. If anything, it should motivate him to start turning around the ship as soon as possible.  To give some context, the recent increase in energy prices and debt servicing costs are on track to reduce households’ average annual disposable income by around £1,000 – reflecting a potent combination of higher fuel pric