'Britain is turning a corner': Chancellor John Healey insists as he vows to rein in spending and ‘balance the books’ in keynote pre-Budget speech
John Healey, the newly appointed Chancellor, pledged to ‘make Britain growth Britain’ during his first speech in charge of the Treasury
John Healey pledged his government's commitment to ‘fiscal discipline’ on Monday, as he vowed to ‘balance the books’ ahead of next month's Budget.
Listen to this article
Speaking at the Manufacturing Technology Centre (MTC) in Coventry, the Chancellor said growth was "at the heart" of his plan for Britain ahead of next month’s Budget.
Taking questions following his speech, Mr Healey also refused to rule out further tax rises, insisting he does not want to "fuel speculation" ahead of the Budget announcement.
"If I respond to speculation now, that will only spawn more speculation," Mr Healey said.
It comes as Mr Healey announced a £150 million fund from the British Business Bank for fast-growing firms in the north of England, alongside the creation of the “northern 500” - a concept that will bring together “the North’s most ambitious mid-sized businesses” led by local mayors.
"My defining mission as Chancellor is growth," the Chancellor responded to LBC, as he set out his pledge to 'make great Britain growth Britain'.
Taking to the stage, the Chancellor said: “The next chapter of Britain’s growth story will be written in more places.
“That’s not sentimentality, that is supply-side economics. A transport bottleneck in South Yorkshire is too often invisible from Whitehall, but it can have a real impact on economic growth and on business investment decisions.
“That’s why, at the Budget, I will set out a roadmap to fiscal devolution, a permanent transfer of power and resources from Whitehall to our regions, with greater business rates retention for local councils and strategic authorities, grants from central government replaced by a share of local income tax for every mayoral strategic authority beginning in 2028.
“London, of course, is our powerhouse, but if our city regions could emulate the success of those in France or Germany, growth in our country would be transformed.”
The timing of the speech couldn't have been more poignant, as Jaguar Land Rover confirmed on Monday that the firm is set to cut 4,000 jobs.
Mr Healey sought to present an optimistic assessment of the UK’s economic future despite the impact of global crises including the war in the Middle East and Russia’s invasion of Ukraine.
In the speech, the first since Andy Burnham entered 10 Downing Street, Mr Healey continued: “The Prime Minister and I are in lockstep in our commitment to meeting the fiscal rules at the upcoming Budget, to balancing the books with a buffer to protect against uncertainty.
The Chancellor added that he wanted twice as many “unicorn” firms in the UK and to make it easier for businesses to test new technology.
Mr Healey said: “So, I’m setting an ambition now to double the number of unicorn firms in this country.”
He said he would also aim to have “sandboxing” powers in place so businesses and innovators can test technology from pavement robots to drones to life-saving medical equipment, which he said regulation currently prevents.
It comes after Sir Richard Branson has urged Chancellor John Healey to avoid making life difficult for entrepreneurs in his first Budget.
The billionaire entrepreneur told LBC it would be "great" if the Government got behind young entrepreneurs and helped them build their businesses.
Sir Richard also called on the Chancellor to give people who are trying to start businesses the breaks they need, just while they get their business up and established.