Chancellor John Healey's upcoming Budget, due in exactly a month, will centre on creating jobs and giving families and firms “breathing space,” themes he outlined in a speech to Labour faithful at the party conference in Liverpool.
Speaking with Andy Burnham watching on, Healey highlighted the “pride of good work” and its significance for households and communities. He also shared personal touches, revealing his first job was as a pot washer in a pub and displaying a miners' lamp from the Cortonwood Colliery in South Yorkshire, a nod to the strike that triggered one of the 20th century's most significant industrial disputes.
Key Themes and Announcements
Healey's speech included a “new age of industrialisation” and a pledge to spread well-paid, skilled jobs evenly across the country. He announced that engineering giant Rolls Royce is investing £300 million at sites including Derby and Rotherham. He also celebrated apprentices who helped deliver the first new Mersey Ferry in 60 years, the £26 million Royal Daffodil, built by Wirral shipbuilder Cammell Laird.
While hope has been credited with a “Burnham bounce,” Healey acknowledged the tough hand he faces ahead of the Budget. He addressed the burgeoning benefits bill, stating, “It is simply not progressive to allow a bigger and bigger benefits bill and a system which offers an income but doesn’t offer a future.”
Debt and Fiscal Discipline
Healey also tackled the near £3 trillion national debt, noting that the over £100 billion spent this year on interest exceeds the combined budgets of the Home Office, justice, and defence. He did not sugar coat the impact of 14 years of Tory chaos, including Brexit.
For households and businesses, the specifics remain unknown until the Budget on October 28. However, targeted help is expected, potentially including energy bills and support for pressing industries. A delay in the planned fuel duty hike could be a universal measure.
Notably, the Chancellor's speech lacked mention of “tax” or who might be worse off. Healey's message to financial markets is that Labour's plans will be built on the “rock of fiscal discipline,” meaning no new wave of costly borrowing.
Borrowing Costs and Outlook
Healey may be deflated by government borrowing costs rising to their highest level since 2007, though this was driven by fresh Middle East tensions rather than domestic policy. As the Chancellor champions a “new hope” and “quiet patriotism,” the month ahead will determine the winners and losers when hope meets reality.
