Healey Refuses to Rule Out Tax Rises as UK Faces Economic Challenges

7:09 AM ETDeveloping

Politics Desk

In Short: In his first major speech as chancellor, John Healey warned of the 'Truss penalty' on borrowing costs and hinted at potential tax hikes.

The former defence secretary, John Healey, refused to rule out further tax rises ahead of the upcoming Budget, as he delivered his first major speech as chancellor. He acknowledged the 'Truss penalty' on borrowing costs, which he said had 'crashed the economy and collapsed confidence in Britain's fiscal strength.

Healey insisted the UK economy is 'turning a corner,' but the challenges remain significant. Jaguar Land Rover announced plans to cut 4,000 jobs, highlighting the scale of the economic pressures. Healey also extended reforms of judicial review from energy projects to all major infrastructure programmes.

Healey's speech came amid ongoing global economic challenges, including the war in the Middle East and Russia's invasion of Ukraine, which continue to impact the global economy. Healey's first major speech as chancellor was a mix of optimism and caution, acknowledging the need to control government spending while preparing for potential tax hikes.

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The Surrey local authority recognised that "difficult decisions" were required The government has officially begun reducing the debt pile of a Surrey local authority.
Officials have started paying down £500m of Woking Borough Council's historic £2bn debt.
The government is effectively paying itself, as the money owed was from its own Public Works Loans Board, according to the Local Democracy Reporting Service.
Woking Borough Council leader Ann-Marie Barker said the financial support would help lessen the costs associated with servicing and reducing the council's debt.
Residents have seen cuts to services, council tax hikes and the sale of public assets and its flagship projects as the local authority has tried to manage its debt.
The former defence secretary insisted the UK economy was “turning a corner”, but warned Britain has been paying a "Truss penalty" since the former prime minister’s disastrous 2022 mini-budget.
“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,” he said in a speech in Coventry on Monday.
He said the rising burden of debt interest showed “staying true to our values means being honest about the need to control government spending”.

Sources

The Independentlink