Chancellor John Healey has declared that boosting economic growth will be his defining mission, cautioning that Labour must "be honest" about controlling public spending in the budget scheduled for 28 October. In his first major speech since taking office in July, Mr Healey stated that supporting stronger growth across the UK, while adhering to the government's fiscal rules, would be the top priority for his budget.
Mr Healey affirmed his commitment, alongside Andy Burnham, to meeting the government's target of balancing day-to-day spending with tax receipts by 2029-30. He argued that stronger growth offers the most sustainable path to balancing the books, especially with public finances under pressure from soaring long-term bond yields.
Addressing business leaders in Coventry, Mr Healey also pledged to devolve tax and spending powers to regional mayors and to "take an axe" to regulations he believes hinder business investment. He refused to detail specific tax and spending plans but promised to uphold Labour's manifesto commitment not to raise taxes on working people, while signalling a potential focus on reducing welfare costs by tackling youth unemployment.