Chancellor John Healey has promised to use next month's budget to boost confidence in Britain's economy while sticking to the government's fiscal rules, arguing there is 'nothing progressive' about losing control of public finances.
Key facts
- John Healey pledged to stick to the government's fiscal rules in next month's budget.
- It was his first speech as chancellor to Labour conference, according to the Guardian.
- Healey said there is 'nothing progressive' about failing to balance the books.
- He warned the budget must account for a challenging global backdrop.
- The Guardian reported borrowing costs have climbed to a record high and diesel prices have hit an all-time high.
Chancellor John Healey has pledged to use next month’s budget to inject hope into Britain’s economy while sticking to the government’s fiscal rules, according to the Guardian. He argued there is ‘nothing progressive’ about losing control of the public finances.
Delivering his first speech as chancellor to the Labour conference, Healey framed the upcoming tax-and-spending event as one that would need to balance ambition with fiscal discipline. He warned that the budget would have to take into account a challenging global backdrop.
The chancellor’s remarks come against a difficult economic setting. The Guardian reported that borrowing costs have climbed to a record high, adding pressure to the government’s plans as it prepares its budget.
Healey’s insistence on balancing the books was tied to a rising welfare bill, which the Guardian noted as part of the backdrop to his comments. He suggested that maintaining control of public finances is itself a progressive priority.
Everyday costs are also under strain, with the Guardian reporting that the price of diesel on UK forecourts has reached an all-time high. Such pressures form part of the economic environment the chancellor must navigate in his first budget.
The speech sets the tone ahead of the highly anticipated budget, positioning fiscal rules as central to the government’s approach even as it seeks to offer a message of hope to the public.
Why it matters
The chancellor's commitment to fiscal rules signals how the government intends to manage taxes and spending at a time of record borrowing costs and rising everyday prices. The choices set out in next month's budget will directly affect households, businesses and public services across the UK.
Frequently asked questions
What did John Healey promise in his conference speech?
According to the Guardian, Healey pledged to use next month's budget to inject hope into the economy while sticking to the government's fiscal rules, saying there is 'nothing progressive' about losing control of public finances.
When is the budget expected?
The Guardian reported that the tax-and-spending event is expected next month, following Healey's conference speech.
What economic pressures did the chancellor highlight?
He warned of a challenging global backdrop, while the Guardian noted rising welfare costs, record-high borrowing costs and an all-time high in UK diesel forecourt prices.