In his first major speech since taking over at the Treasury, Mr Healey acknowledged the impact of high government borrowing costs and promised to address the rising burden on businesses.
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.
Responding to a question about potential tax rises, the Chancellor said: “What I am doing today is setting out plans, a direction for growth…that will see growth in more places in future.
“I want to be the chancellor that gets things done, and I want to see growth driven from more places across the UK.
“I want to be the chancellor also that recognises, tough as it is, Britain has huge resilience, great latent potential and relative strengths in relation to the way that we are dealing with the fiscal challenges we face.”
He later told GB News: “I’m not going to respond to questions about tax. It will only fuel further speculation”
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Robert Jenrick says John Healey makes Rachel Reeves seem ‘inspiring’
Reform UK’s Robert Jenrick said John Healey is making Rachel Reeves seem “inspiring” as he took aim at the Chancellor’s speech.
The party’s Treasury spokesman said: “On the day 4,000 people are losing their jobs, Healey gave a dire and dreary speech that will change absolutely nothing. John Healey is beginning to make even Rachel Reeves seem inspiring.
“Burnham said he wanted to raise the tax-free personal allowance, but he’s bottled it. He promised growth in every postcode, but the West Midlands have just been gutted.
“The markets have worked out that this Government is going nowhere. It’s about time Westminster woke up to that.
“I would make sure the first £15,000 everyone earns is tax-free – paid for by cutting the waste on foreign aid, benefits for people choosing not to work, and mad net zero subsidies that Labour slavishly defend.”
Michelle O’Neill says John Healey’s budget needs to be ‘right’ for Northern Ireland
Northern Ireland’s First Minister Michelle O’Neill | PANorthern Ireland First Minister Michelle O’Neill has said any budget agreed for Northern Ireland has to be the “right budget”.
The Sinn Féin Deputy Leader was speaking after meeting with Northern Ireland Secretary Sir Chris Bryant.
Ms O’Neill said: “We’ve just come from a meeting with the Secretary of State, we’re very much focused on getting a budget, but it needs to be the right budget. It needs to be a budget that reflects the needs of people here.
“We’ve long made the case and can stand over the case that we have been underfunded, our public services, our health system, our education system, our wastewater infrastructure, our roads, all the things that people deserve.
“The fault line here has always been that we’ve been underfunded. We continue in those discussions and they’ll carry on throughout today, and in days ahead.
“But our approach to this discussion is around a fair funding model, proper funding for our public services.”
John Healey announces revising Treasury green book rules
John Healey pledged to revise green book rules over investment discount rate.
The Chancellor said: “Investment has increased by 4.9 per cent since the election alone. But we need to do more.
“So first, I’m making changes to the Treasury green book, reducing the discount rate from 3.5 per cent to three per cent, and that will skew investment towards projects with more long-term potential, meaning that more places across the UK will get a fair hearing.”
John Healey wants twice as many ‘unicorn firms’ in Britain
Chancellor John Healey said 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.
John Healey to launch ‘permanent transfer of power’ away from Whitehall at Budget
Chancellor of the Exchequer, John Healey, delivers a speech at the Manufacturing Technology Centre
| GETTY
John Healey said he would set out plans for “a permanent transfer of power and resources” away from Whitehall at the Budget.
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.
“[This will bring] 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.”
Mr Healey also announced £150million from the British Business Bank for fast-growing firms in the north of England and the creation of the “northern 500”, bringing together “the North’s most ambitious mid-sized businesses” in a group led by mayors.