Chancellor John Healey delivered a 40-minute conference speech heavy on sentimentality but light on action, according to a critique by Harvey Jones. The speech, which touched on hope, resolve, reindustrialisation and growth, was largely rooted in a mythical past that only die-hard Labour activists could appreciate.
Nostalgia over substance
Healey referenced Jarrow marchers, miners' lamps, Clement Attlee, apprentices and even lending former Labour chancellor Gordon Brown a red tie before his 1999 conference speech. Notably absent was any mention of Labour's 1976 IMF bailout, which occurred exactly 50 years ago on the same date as the speech.
While Labour delegates embraced these nostalgic homilies, the economic challenges facing Britain today are markedly different. Healey praised Keir Starmer and Rachel Reeves, while attacking Conservatives David Cameron, Boris Johnson and Liz Truss. He also took a swipe at Reform UK's Nigel Farage, calling him "Liz Truss with a Bitcoin account".
Youth unemployment figures under scrutiny
The most contentious part of the speech concerned youth unemployment, which Healey blamed entirely on the Tories. However, figures cited in the article show that when Labour took office in July 2024, youth unemployment stood at 14%. The latest figures show 751,000 16 to 24-year-olds are unemployed, a rate of 16.4%, with numbers increasing by 109,000 in the last year alone.
The increase followed Reeves's decision to add an extra £25 billion to the cost of employing people by hiking employer National Insurance contributions. The rate was raised, and the salary threshold at which employers start to pay it was reduced from £9,100 to £5,000, hitting young people taking part-time jobs particularly hard.
Policy decisions and market reaction
Combined with Angela Rayner's Employment Rights Act, which gave workers full sickness rights from day one, Labour has made hiring more expensive and riskier for employers. Healey spent half his speech presenting Labour as the solution.
Healey raised the spectre of fiscal discipline, but gave no details. Ten-year gilt yields ended where they began, at a record high of 5.4%. The biggest cheer came for the revival of the Union Learning Fund, which the Tories had abolished.
With Healey's rate of delivery, his Budget speech could last several hours and be mostly fluff, leaving the bond market unimpressed and voters unconvinced.
