John Healey is preparing to outline a distinct approach as the new chancellor ahead of this year’s Labour conference in Liverpool, signaling shifts in policy emphasis compared to his predecessor, Rachel Reeves. Speaking ahead of his address to party delegates, Healey underscored his focus on supporting business growth and addressing welfare concerns, while firmly resisting speculation about forthcoming budget measures.
Healey, the MP for Rawmarsh & Conisbrough since 1997, emphasized a cautious approach to budget announcements, criticizing previous pre-announcement leaks and policy reversals under Reeves that fueled market uncertainty. He opted to avoid prematurely revealing details, aiming to restore confidence among businesses that had been unsettled by Labour’s earlier policies, such as the national insurance increase and expanded workers' rights regulations.
In his conference speech scheduled for Monday, Healey plans to emphasize measures aimed at easing burdens on businesses, citing the recent cut to business rates for pubs and social clubs as an example of government support. He also announced new terms for an export loans scheme designed to help UK companies compete in emerging markets including Brazil, Morocco, and Mexico, signaling a strategic focus on driving investment and trade.
Addressing the ongoing concern about the departure of wealthy individuals from the UK, Healey expressed a pragmatic stance. Noting the example of hedge fund manager Chris Rokos, who relocated to Greece, the chancellor stressed the importance of retaining high-net-worth individuals due to their role in job creation and economic growth. He highlighted that the UK currently has the lowest capital gains tax among G7 European nations, though he did not rule out potential adjustments to the tax regime.
On welfare, Healey conveyed a determination to tackle youth unemployment and dependency on benefits, an issue he framed as both a moral imperative and an economic challenge. Reflecting on his experience representing a South Yorkshire constituency affected by past high unemployment rates, he positioned Labour’s strategy as aiming to prevent a generation from being sidelined post-pandemic. This marks a departure from the abandonment of a £5 billion welfare cuts package by Reeves and party leadership amid internal opposition.
Healey’s background includes significant experience within the Treasury, notably under former Chancellor Gordon Brown, whom he described as an enduring influence and mentor. He expressed a commitment to balancing the role of government partnership with the private sector in driving economic growth.
Regarding defence spending, Healey reiterated the government’s intent to support the armed forces and signaled that the target to increase defence expenditure to 3% of GDP by 2030 remains under consideration for the coming year. This reflects his previous criticism of Labour leader Keir Starmer over delayed funding commitments.
On fiscal policy, Healey categorically denied there would be any relaxation of the government's adherence to fiscal rules despite pressure for flexibility. He acknowledged the challenging environment created by elevated borrowing costs and inflation but insisted budget decisions would be disclosed only at the official autumn statement on October 28.
He also acknowledged rising fuel costs amid the US-Iran conflict and hinted that planned increases in fuel duty could be reconsidered to mitigate the impact on consumers.
As Healey prepares to formally present his vision, his tenure appears aimed at providing clarity and steadiness, seeking to reassure both markets and party members with a pragmatic blend of business support and social responsibility.