New UK Chancellor John Healey outlines 'new hope for Britain' vision

John Healey said he wants to build "new hope" for Britain, as he addressed staff at the Treasury for the first time since being appointed chancellor.

Healey promised fiscal control would be his "first duty", as he said it would be the "bedrock of economic stability".

Labour would usher in a "new era of devolution and public control", he told civil servants in the department's building in Whitehall, as he promised "principles not political buzzwords".

He spoke on his return to the Treasury, two decades after he served as a minister under Gordon Brown. Healey was a surprise appointment by Andy Burnham on Monday, nearly six weeks after he quit as defence secretary, which precipitated the resignation of Keir Starmer.

There were overlaps in his address with speeches made by the Prime Minister in recent days, including the effect of the financial crisis "still driving people's pessimism about who wields power in this country".

Healey acknowledged challenges faced by Britain, including growth being too low, high debt and overstretched public finances.

He praised his predecessor Rachel Reeves, as he went on to emphasise his commitment to control over the public finances as part of five priorities for the Treasury. He said the government would operate with a financial "buffer" to protect against economic shocks.

He said: "Fiscal control must be our first duty, it is mine."

Healey added: "Fiscal discipline, fiscal credibility is the bedrock of economic stability and national security. We will meet the fiscal rules.

"Andy Burnham and I have talked about how we will do that in lockstep, ensuring there's a buffer also for uncertainty."

He said it was a "huge privilege" to be appointed chancellor, and said: "I'm still burning with a passion about this institution as a force for stability, for security, for growth, a force for a successful Britain in a much tougher world, that's the task we face at the heart of government".

Healey also said he would focus on growth across the UK, using Burnham's phrase of "growth in every postcode". He said Labour would make the "fullest possible use of public investment within our fiscal framework" and the government would make the most of private and international investment.

The Treasury will also try to buy British "by design" to back British "benefits, jobs and procurement". He went on to say he would back entrepreneurs "who have a bright idea or a small business they want to grow" as he urged the need for wealth creation.

Healey returned to a theme of Burnham's speech in Downing Street on Monday as he said the cost of living would be central to his plans.

He said: "I want to make life more affordable, bringing down the cost of living and beginning a new era of devolution and public control. Not political buzzwords, but principles to underpin the decisions made in this building and in this government."

The announcement on Monday that the government would cut VAT from electricity bills was the first step to give "people a little more breathing space" this winter.

"This is the way that we start to build a new economy, this is the way that we start to build new hope, this is the way that we start to advance working people in this country," he said.

There were moments of levity in his address to staff in Whitehall, as he was introduced by Treasury permanent secretary James Bowler, who he had worked with in his previous spell in the Treasury.

Healey said: "It's so good to see so many bright young, dedicated, really top notch officials here at the Treasury, and also one or two familiar faces. Perhaps a little older, a little wiser, a little greyer.

"Me, I'm still bald."

By Harry Taylor, Press Association Political Staff

source: PA

Copyright 2026 Alliance News Ltd. All Rights Reserved.