Healey says growth is ‘pathway out of debt’ but bats away tax questions
Chancellor John Healey said he will “not speculate” on expected tax rises at his maiden Budget next month as he said growth was at the “heart of fiscal challenges” facing the UK. In his first major speech as Chancellor in Coventry, Healey batted away questions about whether businesses and households were set to face another [...]
Chancellor John Healey emphasized growth as the "heart of fiscal challenges" facing the UK during his maiden Budget speech, stating growth is "indivisible" from fiscal stability. Heavily focused on boosting growth "in more places," Healey pledged to double the number of unicorn startup companies valued at over $1bn, reform planning rules to enhance nuclear energy production, review railway costs, and prioritize long-term investments in public infrastructure.
He reiterated that Labour's 2024 manifesto pledges ruled out hikes to income tax, VAT, and national insurance, but refused to speculate on possible tax increases, asserting that doing so would only fuel speculation. Healey also highlighted the government's commitment to cutting business administration costs by 25 per cent by 2030 and reforming planning rules.
Despite these promises, analysts at Pantheon Macroeconomics and multiple City institutions believe tax rises are highly likely due to higher government borrowing costs and state expenditure pressures. Shadow Chancellor Andrew Griffith criticized Healey's speech, stating that "warm words about growth will not make growth a reality" and that the Chancellor failed to provide a serious plan to reform welfare or fund defense adequately.
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