Chancellor John Healey used his first major speech in the role to call for renewed "confidence about Britain," even as he acknowledged that government borrowing costs have hit a historic high. He declined to rule out tax rises ahead of the 28 October Budget, prompting the Conservatives to accuse him of failing to end uncertainty on tax.
Chancellor John Healey called for a restoration of confidence in the UK economy in his first major speech as chancellor, even as he acknowledged that government borrowing costs have climbed to a historic high. Speaking at the Manufacturing Technology Centre in Coventry, he said his mission was to "make Great Britain growth Britain" again, with seven weeks left until his first Budget on 28 October.
Tax rises not ruled out
In a BBC interview, Healey promised that doubling down on growth generated in more places would be a central priority ahead of the Budget. He did not rule out tax increases, with a recent rise in government borrowing costs piling pressure on the public finances. Pressed on his plans, he declined to comment on specific tax decisions, promising only to balance the books and control public spending. Asked about the surge in borrowing costs this month, Healey said the government was responding to extreme pressures in the wider market, and repeated that he wanted to bring down welfare costs.
Jaguar Land Rover job losses cloud outlook
Healey said times are tough, pointing to the announcement of 4,000 mostly UK-based jobs at Jaguar Land Rover. He said he is in lockstep with Prime Minister Andy Burnham on the need for fiscal discipline and a spending buffer against the sort of uncertainty the JLR decision has shown locally.
Opposition accuses Healey of dodging tax questions
Healey said the government will stick to Labour's manifesto pledge not to increase taxes on working people. Conservative Shadow Chancellor Andrew Griffith said "Healey failed to end uncertainty by ruling out more tax rises." Griffith added that Healey sounds increasingly like continuity Rachel Reeves.
£150m fund for northern England
Healey also unveiled a £150m fund for companies in the north of England, financed from money already allocated to the British Business Bank. The fund will provide investments of between £5m and £15m to fast-growing firms, and is expected to back university spin-outs and other ambitious businesses across the north. Liberal Democrat deputy leader Daisy Cooper said re-announcing the money would barely shift the dial on growth.
Source: BBC News
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