The Finance Minister of the United Kingdom, John Healey, has reiterated that fiscal discipline will be the central axis of his management, as he already indicated in his first days at the head of the British Treasury. In addition, he has emphasized that the Prime Minister, Andy Burnham, is "totally committed" to respecting the fiscal rules ahead of the October budget, the first that the new Executive will prepare.
"With the balance of accounts, with a cushion to protect us from uncertainty, with control of indebtedness to curb inflation and reduce poverty in the long term in our public finances. And this is not about lines on a graph or numbers on a spreadsheet, it is a matter of values," he specified about the upcoming public accounts, the UK Finance Minister said in one of his first major speeches in office.
Along with this commitment to stability, Healey has indicated that the new accounts will be supported by a relevant decentralization process, with the aim of giving local administrations more leeway to boost the private economy of their territories.
"The solution, therefore, is a fundamental change, a change that begins by empowering local leaders and providing resources to build infrastructure and drive private investment. And developing local industrial strategies backed by public investment that minimizes risks and meets local needs," he has maintained.
In this context, he has positioned growth as a pillar of the country's economic recovery and has advanced that he will focus on supporting the business fabric, encouraging the consumption of goods produced in the United Kingdom and exports. At the same time, Healey has admitted that the costs borne by companies have risen significantly in recent years.
"A dual mission for growth, led by the Prime Minister and by me as Chancellor. Downing Street and the Treasury working together through decentralization, greater public control, and a strong strategic center of government," he summarized the strategy.
DOES NOT REVEAL TAX POLICY
The Treasury chief has avoided specifying how he will articulate his future tax policy, at a time when the public deficit stood at £1.8 billion (€2.1 billion) in July, which has raised questions about how he will combine fiscal discipline with increased public spending in the upcoming accounts.
"If I respond now to those speculations, I will only fuel them even more, and it is logical, as any finance minister would say, that this is for the budget. In that budget, I will outline my plans and the future direction of the government for this country," Healey has emphasized.
Among the goals he has set for the budget are the strengthening of spending on defense and social assistance. The minister has reiterated that he will respect the Labour Party's electoral program, which includes not raising income tax, value-added tax, or corporate tax.
Thus, the alternatives on the table would involve taxes on wealth, on banking profits, or other figures that fall on large fortunes. In this context, JPMorgan Chase's CEO, Jamie Dimon, had a call with Healey in which he expressed his concern about the possible impact of an increase in the tax burden on the banking sector.