Chancellor John Healey delivered his Growth Speech on 7 September 2026, highlighting recent economic developments. He noted that interest rates have been cut six times since the election, and borrowing has reached its lowest level in six years. The Chancellor also stated that the UK experienced the fastest growth among G7 nations in the first half of this year.
Healey emphasised that fiscal discipline is his primary focus as Chancellor, aligning with the Prime Minister's commitment to meeting fiscal rules in the upcoming Budget. This includes balancing the books, controlling borrowing to manage inflation, and reducing long-term pressures on public finances.
The Chancellor acknowledged that global conflicts and trade tensions have driven up inflation and interest rates, leading to UK borrowing costs being at historic highs. He stated that national debt has risen from 64% of GDP in 2009 to almost 100% today. Healey also mentioned that unfunded spending after COVID contributed to inflation hitting 11%.