Business · News 61
John Healey has said boosting economic growth will be his defining mission as chancellor. In his first major speech since taking the role in July, he emphasized that the top priority for his upcoming 28 October budget will be to support stronger growth across the UK while adhering to the government’s fiscal rules. Healey warned Labour must be honest about controlling public spending.
Against a backdrop of volatile global financial markets, he stated that he and Andy Burnham are committed to meeting the government’s self-imposed target of balancing day-to-day spending with tax receipts by 2029-30. Rising long-term bond yields, which hit an 18-year high last week, put pressure on public finances. Healey argued that stronger growth is the most sustainable way to balance the books.
He also signaled that Labour’s budget would require honesty about controlling government spending. Economists suggest the chancellor may need to increase taxes or cut spending due to rising pressures and economic instability from the war in Iran.
Healey addressed business leaders in Coventry, acknowledging Britain’s ongoing economic challenges since Liz Truss’s mini-budget caused a bond market meltdown. He emphasized fiscal discipline amid uncertainty, noting that it makes government and business investment harder.
Refusing to specify tax and spending plans before the budget, he reiterated Labour’s manifesto commitment to not raising taxes on working people. However, he hinted at welfare reforms to tackle rising youth unemployment, stating there is a need to reduce welfare costs and support more people into employment.
Healey also mentioned a review by Alan Milburn into youth worklessness, calling it a moral and fiscal duty to help young people find jobs. The budget will include devolution of tax and spending powers to regional mayors, with plans to retain business rates and share income tax.
Healey’s agenda focuses on investment, innovation, and job creation to drive long-term growth, addressing the cost of living and business challenges. He put growth at the center of his mission as chancellor.
Source: The Guardian
