World · Daily Terminal
Britain is turning a corner but must back wealth creation and ensure prosperity reaches every region if it is to solve its woes, John Healey will say in his first major speech as chancellor. As he seeks to reassure nervous markets over Labour's stewardship of the economy, he will argue fiscal credibility is ‘indivisible’ from growth. Laying out his vision on Monday, just weeks before the expected Budget, he will state: ‘I want to see wealth creation in this country.
I want to see businesses make a profit...’ and emphasize the need for an active, accountable state at all levels to remove barriers and create conditions for more investment. Chancellor John Healey will deliver his first Budget amid bond market turmoil. New Prime Minister Andy Burnham will outline a ‘clear diagnosis’ of the economic issues, proposing a ‘fundamental shift’ by decentralizing power to city regions to attract investment and jobs, rather than bureaucratic complexity and red tape.
He will frame growth as an optimistic story of resilience, pride, and potential, highlighting Britain’s readiness to embrace new technologies and ideas. Despite the upbeat tone, Healey faces pressure to rule out tax rises and reassure markets, which are jittery due to high borrowing costs—reaching levels not seen since the 2008 financial crisis, partly due to Iran war instability. On Saturday, ministers announced plans to slash outdated reporting rules, saving businesses over £450 million annually.
Healey will also allocate £150 million from the British Business Bank to support northern scale-ups, framing it as supply-side economics, not sentimentality. Andy Burnham failed to rule out tax rises last week. Shadow chancellor Andrew Griffith criticized Healey’s speech as a ‘policy-light word salad’ lacking clarity on growth creation, questioning the sincerity of commitments to reduce red tape, citing past anti-business measures.
Opposition voices also highlighted the lack of mention of defence spending, despite recent threats from Russia and Iran, and the need to increase defence expenditure to 3% of GDP. Treasury spokesman Robert Jenrick noted that even Rachel Reeves had more vision than Healey’s approach, warning that without addressing ballooning benefits, foreign aid, and net-zero subsidies, tax rises on working people are inevitable. Reform Party spokesman Robert Jenrick emphasized that only their party can cut wasteful spending to raise the tax-free personal allowance to £15,000 in the first budget.
Source: The Independent
