Healey pledges to ‘draw line’ under rising business costs in push for growthThe Chancellor also promised to control Government spending.Chancellor of the Exchequer John Healey delivers a speech on economic growth at at the Manufacturing Technology Centre in Coventry, as he unveils a �150 million fund for fast-growing northern firms. Picture date: Monday September 7, 2026.PA WireHelen Corbett3 minutes ago
Chancellor John Healey promised to “draw a line” under rising costs for businesses, end legal blockages to building infrastructure and embrace technology as part of a push for growth.
He also promised to control Government spending in his first major speech since taking over at the Treasury, but refused to rule out tax rises in next month’s Budget.
Speaking in Coventry, the Chancellor acknowledged the impact of high Government borrowing costs and promised to address the rising burden on businesses.
He said: “I dedicate myself to this mission as Chancellor to make Great Britain Growth Britain again with more investment, more innovation, and more jobs.
“Let me be clear: I recognise that the cost of business – that’s energy bills, regulation burdens, planning constraints, labour costs – have grown since Covid, and I want to draw the line.
“Whether it is the cost of business or the cost of living, the only way we deal with these in the long term is growth.”
The Chancellor sought to show his commitment to fiscal discipline in a bid to reassure bond markets in the wake of high borrowing costs.
And he presented 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.
“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”.
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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 – including transport and water.
Those reforms would mean “vexatious litigation and challenge can’t block economic growth”, he said.
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.
John Healey pledged to kick-start growth in Britain (Betty Laura Zapata/PA)PA Wire
He announced that The British Business Bank would be providing £150 million for fast-growing firms in the North of England and the creation of a “Northern 500” group of “the North’s most ambitious mid-sized businesses”, to be led by regional mayors.
He said he wanted to double the number of “unicorn” firms in the UK and that he and Business Secretary Jonathan Reynolds would seek out new ones and make the state the “early first customer”.
And he set the aim of having “sandboxing powers” in place next year, so businesses and innovators can test frontier technology “from pavement robots to drones to life-saving medical treatments”, which he said regulation currently prevents.
He said the Government should grasp the opportunities presented by artificial intelligence, but said he would not “allow the technology to proliferate with no oversight”.
Mr Healey refused to rule out tax rises at his first Budget as Chancellor, telling journalists: “If I respond to speculation now, that only fuels more speculation.”
Former defence secretary said he would build on the work of his predecessor at the helm of the Treasury, Rachel Reeves, and former prime minister Sir Keir Starmer.
Chancellor of the Exchequer John Healey said the Government should grasp the opportunities presented by AI (PA)PA Wire
Shadow chancellor Andrew Griffith said he sounded like “continuity Rachel Reeves”.
The Tory MP said: “Warm words about growth will not make growth a reality or cover up the enormous damage Labour have done to businesses and family finances.”
Liberal Democrat Treasury spokesperson Daisy Cooper said: “The Chancellor talked about the huge costs faced by businesses, but completely failed to admit that it was his own Government that saddled them with many of these extra costs in the first place.
“After being slapped with a growth crushing jobs tax, our brilliant British businesses have found it so much harder to hire more people and unlock their potential.”
Reform UK’s Treasury spokesman Robert Jenrick said, referring to Jaguar Land Rover (JLR) confirming plans to axe 4,000 jobs:
“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.”
He added: “The markets have worked out that this Government is going nowhere. It’s about time Westminster woke up to that.”
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