Former chancellor urges bold fiscal moves for Healey's upcoming budget
Sir Jeremy Hunt warned John Healey not to let memories of the 2022 mini-Budget deter bold economic reforms in the October budget.
Sir Jeremy Hunt said that the 2022 mini-Budget continues to loom over current fiscal planning, and John Healey must resist the temptation to make only incremental changes. He argued that the inaugural budget of a new chancellor offers a chance to set a bold narrative, suggesting measures such as a defence target of 3% of GDP by 2030 and disciplined public-sector pay growth. Hunt highlighted that the latest KPMG outlook shows borrowing costs and sluggish growth have erased billions of fiscal space since the spring forecast.
He also warned that a budget focused on minor adjustments would miss a strategic opportunity. While Labour faces pressure to raise taxes or cut spending, Hunt emphasized the need for a clear, ambitious plan to tackle the country’s fiscal challenges.
Why it matters
The stance of a former chancellor could shape the direction of Britain’s next major fiscal policy.
How this story developed
- Sep 1 Prime Minister Andy Burnham to Address Commons on First Day Back
- Sep 3 Burnham announced a plan to extend devolution to all parts of England and to increase public control of utilities.
- Sep 3 During the opening of Reform UK's three-day conference in Birmingham, deputy leader Richard Tice warned against Chinese buses and goods, urging support for British manufacturing. Yet the nearby merchandise stall offered caps, hoodies and water bottles that were produced in China alongside items from Bangladesh, Pakistan and India. Prices ranged from £5 for pins to £45 for hoodies, with a UK-made Nigel Farage tea towel costing £20. The speech also highlighted the party’s broader business agenda and its leader Nigel Farage’s recent controversies.
- Sep 4 Bond yields surged to their fastest rise since the 2022 mini‑budget, wiping out £12 billion of fiscal headroom.
- Sep 6 Burnham pledged to transfer failing utilities into public ownership.
- Sep 6 John Healey will launch a £150 million fund aimed at supporting university spin-outs and other high-growth companies across northern England.
- Sep 6 West Midlands Police have issued a call for the protester to come forward to assist their inquiry.
- Sep 7 Healey also pledged steps to curb borrowing costs, energy bills, regulation and labour expenses on UK businesses.
- Sep 9 Prime Minister Andy Burnham said he will not trim social security programmes to meet the 3 % of GDP defence spending goal and gave no timetable for reaching it.
- Sep 9 Burnham publicly rejected the welfare‑cut funding plan.
- Sep 13 Burnham faced his first Prime Minister's Questions where opposition members pressed him on funding for his agenda.
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