Gathered in Bangkok for the IMF and World Bank annual meetings, John Healey — carrying the UK Treasury portfolio — is set to argue for fiscal restraint and long-term economic resilience at a point when administrations around the world are contending with elevated borrowing costs, inflation that has proved difficult to bring down, and an unsettled geopolitical backdrop.

The gathering represents Healey's debut at the IMF annual meetings in his role as finance minister, where he is scheduled to hold talks with counterparts from other countries on financial stability, trade flows, and the economic fallout from the ongoing conflict in the Middle East. In a statement released by his office, he indicated that his aim was to work alongside international partners to keep trade moving, support families and businesses, and build a stronger, more resilient economy for Britain.

A proposal linked to the UK's finance minister would ask major economies to set out credible plans for reining in fiscal deficits and restoring balance between government outlays and income. Remarks along those lines had already come from both IMF Managing Director Kristalina Georgieva and Bank of England Governor Andrew Bailey, each pointing to mounting pressure on public finances.

At the meetings, treasury officials and central bank representatives are set to assess how an ongoing armed conflict between the United States and Iran is reshaping energy costs, inflationary pressures, and the broader trajectory of global economic output.

Government borrowing costs across the world's largest economies have climbed to levels not seen in decades, reflecting persistent inflation, expanding public debt loads, and a broad expectation among investors that central banks will hold rates higher for longer.

A planned agenda for Healey includes talks with Ukrainian Finance Minister Sergii Marchenko on how the country's economy can hold up under sustained geopolitical pressure.

With Britain's annual budget set for 28 October, Healey is navigating a range of domestic demands in the lead-up to that announcement. Commitments to restrained public spending and a steady reduction in government borrowing levels form the core of the approach he has outlined. Debt servicing burdens that have been climbing, alongside mounting obligations on defence and energy support, each carry the potential to put those commitments under strain.

According to the Institute for Fiscal Studies, tax rises in the region of £36 billion may be needed to cover both the pressure inflation has placed on public finances and the cost of expanded defence spending. Raising the primary income tax rate by three percentage points would produce a comparable financial burden.

How the forthcoming budget handles the pull between spending support and fiscal discipline will reveal much about the government's capacity to navigate its domestic priorities while external pressures on global financial markets persist.