New Chancellor John Healey delivered his first major speech in Coventry today, 7 September 2026, outlining the principles of his economic policy. He emphasised a commitment to fiscal discipline and stimulating growth, stating that he will adhere to existing fiscal rules and seek to control public spending.
Healey highlighted the rising cost of borrowing, noting that gilt yields reached a 19-year high last week, with 10-year UK government bonds exceeding 5.29% on 2 September. He attributed the increase in government debt as a share of GDP, from 64% in 2009 to almost 100% today, to previous Conservative governments and the 2022 Truss budget.
The Chancellor reaffirmed his priority for fiscal discipline, stating that he and the Prime Minister are committed to meeting fiscal rules at the upcoming Budget. This includes balancing the books with a buffer, controlling borrowing to manage inflation, and reducing long-term pressures on public finances.
While not providing specific policy details for the Budget, Healey announced broad plans for fiscal devolution. This roadmap will involve a permanent transfer of power and resources from Whitehall to regions, including greater business rates retention for local councils and strategic authorities, and a share of local income tax for mayoral strategic authorities starting in 2028.
Healey also committed to reducing the regulatory burden on businesses by 25% before the end of this parliament in 2029. Additionally, he plans to modify the Treasury Green Book to direct investment towards projects with "more long-term potential" and incorporate "economic potential analysis" into business case decisions for regional investment.