Healey vows to control public spending and help UK economy deliver on potential

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 a speech in Coventry ahead of next month’s Budget, the first since Andy Burnham entered 10 Downing Street, Mr Healey said: “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.

“To controlling borrowing to bear down on inflation and reducing long-term pressures on our public finances.”

He said the rising burden of debt interest showed “staying true to our values means being honest about the need to control government spending”.

But he insisted there was an “optimistic story” about the UK economy which had “huge latent potential”.

It was, he said, “a country turning a corner, a country whose people, businesses and communities are ready to seize the opportunity of new technologies and new ideas”.

Giving an overview of his plans for the economy, Mr Healey said the Government would extend its reforms of judicial review from energy projects to all major infrastructure programmes.

He said the reforms would mean “vexatious litigation and challenge can’t block economic growth”.

The Chancellor also reiterated the Government’s commitment to transferring power out of Whitehall, saying he would set out a “roadmap to fiscal devolution” at next month’s Budget.

Ahead of that, he said the British Business Bank would be providing £150 million for fast-growing firms in the North of England and announced the creation of a “Northern 500” group of “the North’s most ambitious mid-sized businesses”, to be led by regional mayors.

Responding to the Chancellor’s speech, David Chadwick MP, Welsh Liberal Democrat Westminster spokesperson, said: “The Chancellor talks about delivering growth in every postcode, but once again Wales appears to be an afterthought.

“While the new partnership with the Cardiff Capital Region is welcome, there is no new guaranteed funding or projects for Cardiff or Wales attached to today’s announcement.

“Wales has been shortchanged for too long, missing out on billions in rail investment and receiving a disproportionately low share of research and development funding.

“These structural issues need to be addressed if we are serious about unlocking Wales’ economic potential.

“Wales cannot simply be tacked onto an economic strategy designed elsewhere. We need a proper economic development plan for Wales, backed by the necessary powers and investment in infrastructure, innovation and skills, including in our rural and coastal communities and former mining heartlands.”