Chancellor John Healey delivered his first major speech as chancellor, emphasizing the need to restore confidence in the UK economy amid high borrowing costs. In an interview with the BBC, Healey highlighted that promoting growth in various regions will be a key focus leading up to his Budget announcement on 28 October. He acknowledged the difficulties posed by recent job cuts at Jaguar Land Rover (JLR) and did not dismiss the possibility of tax increases due to rising government borrowing costs. Healey stated his commitment to balancing the budget and controlling public spending, while expressing a desire for the public to feel confident about the future of Britain.
During his speech at the Manufacturing Technology Centre in Coventry, Healey outlined his mission to foster economic growth across the UK, advocating for more devolution and public leadership. He described the current economic situation as resilient and optimistic, aiming to leverage new technologies and ideas for growth. Healey also reiterated the Labour Party's pledge not to increase taxes on working individuals, despite the pressure from rising borrowing costs and the need to fund increased defense spending.
Conservative Shadow Chancellor Andrew Griffith criticized Healey for not providing clarity on potential tax increases. Healey's remarks contrasted with previous statements from former Prime Minister Sir Keir Starmer, who faced criticism for his negative outlook on the economy. Helen Miller from the Institute for Fiscal Studies expressed skepticism about the feasibility of achieving growth in every region. Amidst rising borrowing costs, Healey announced a £150 million fund aimed at supporting innovative companies in northern England, which he hopes will stimulate economic development. However, some critics, including Liberal Democrat deputy leader Daisy Cooper, questioned the impact of this funding on overall growth.