Chancellor John Healey has ordered government departments to 'buy British', promising an overhaul of procurement rules to focus on UK goods and services on a scale never seen before.
Former Defence Secretary Mr Healey said every pound spent will support British jobs. He promised a 'determined drive' to focus on UK goods and services, rolling out the ethos he had at the Ministry of Defence (MOD) across government.
Procurement overhaul
Mr Healey said: 'You will see this as a determined drive that you have not seen before from a British government. Buying British not 'if possible', but by design. So every procurement pound supports British jobs, British apprenticeships and British skills.'
In an interview with The Sun, he pointed out that when he was Defence Secretary, over 86% of the 1,200 major defence contracts handed out went to British firms.
He said: 'I am as concerned about the cost of business as I am the cost of living. I am really concerned that where we make government policy and government decisions, these can help raise the levels of investment, innovation and profit in British business.'
First week measures
In their first week in government, Mr Burnham and Mr Healey announced an end to VAT on household electricity bills and a £2 bus fare cap across England, outside London. They also announced plans to slash business rates for pubs and small music venues by 20%.
Asked where the money will come from, Mr Healey said: 'Fiscal credibility is the bedrock of economic stability. Both Andy and I have talked about how we will work in lockstep to meet the fiscal rules and ensure we have got a buffer against uncertainty.'
Budget and defence challenges
The Chancellor will set out his first Budget in the autumn after replacing Rachel Reeves. One of his major challenges will be to find £5 billion to fund extra spending in the defence investment plan (DIP).
The government is yet to set a timetable for reaching 3% of the UK's gross domestic product (GDP) on defence. Mr Healey told The Sun this was 'not a matter for this first week'.
Prime Minister Andy Burnham has vowed to build a country where 'nobody is written off' and everyone is treated with respect. Writing for The Mirror, Mr Burnham claimed this week had shown how politicians could make lives a 'little bit easier', but that his job won't be done until people aren't just living, but 'living well'.
