UK Budget Kept Under Tight Security as Growth Beats Forecasts

The Budget is being kept under very tight protection, according to BBC News. Chancellor's aides are using intelligence-style security measures to guard the details. The plans have been split into compartments, so very few people can see all of them.

Ministers who view the Budget plans must sign a digital promise not to brief the media. Chancellor John Healey has supported these strict Budget security procedures.

The UK economy has been doing better than expected. Growth was 0.6% in the first quarter (three months) of the year and 0.5% in the second quarter. Growth in the third quarter is heading for between 0.6% and 0.8%. Each quarter has seen growth twice as fast as the Office for Budget Responsibility predicted in March.

The UK is the fastest growing G7 country so far this year. The International Monetary Fund (an organisation that works to support the world's money systems) praised the UK for standing out among G7 countries for its plans to cut borrowing.

There are some worries too. Inflation (the speed at which prices rise) reached 3.5% in September. Borrowing was higher than forecast, and an imminent Bank of England interest rate rise is very much on the cards. Typical energy bills are predicted to rise by 16% in January.

To help with costs, Burnham and Healey have relied on fairly inexpensive policies. These include capped bus fares and a temporary VAT cut on household energy bills.

The Budget will be delivered on Wednesday. The Office for Budget Responsibility forecast is due to be released when Healey sits down in the House of Commons, around 13.00. Conservative leader Kemi Badenoch will deliver the Opposition's response. The Debt Management Office will also publish the gilt remit, which details changes to its bond sale plan.