New Chancellor John Healey has promised to combine strict control of the public finances with measures to help families through the cost-of-living crisis, as he set out his economic priorities in his first speech to Treasury staff.
Just days after being appointed by Prime Minister Andy Burnham, Healey used his first address at HM Treasury to outline a five-point plan focused on fiscal discipline, economic growth, backing British businesses, wealth creation and making life more affordable.
His speech also offered the clearest indication yet of the approach the Government is expected to take ahead of the Autumn Budget, with ministers under growing pressure to ease the burden on households while sticking to tough spending rules.
Opening his speech, Healey described returning to the Treasury as "a huge privilege" after nearly two decades away.
He 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."
The Chancellor also paid tribute to his predecessor Rachel Reeves, praising her handling of the economy.
He said: "She brought financial discipline.
"She enabled growth.
"She delivered two full Budgets, a spending review... and she will always be recognised as the first ever female Chancellor of this country in nearly 700 years."
Looking ahead, Healey warned Britain continued to face significant economic challenges.
He said the country was grappling with "low growth, high debt, too much inequality, overstretched public finances", as well as growing international threats to both the economy and national security.
Setting out his priorities, Healey made clear there would be no departure from the Government's fiscal rules.
"Fiscal control must be the first duty," he said.
"Fiscal credibility is the bedrock of economic stability and national security.
"We will meet the fiscal rules."
Alongside fiscal discipline, Healey pledged to drive "growth in every postcode", saying every Whitehall department would now have responsibility for boosting the economy.
He also unveiled a strong commitment to supporting British industry.
"Buying British not if possible, but by design," he said, promising to prioritise UK firms in areas including transport, energy, defence, artificial intelligence and technology.
Healey also sought to reassure entrepreneurs and small business owners.
"I want our government commitments to create greater confidence, investment, innovation, profit in our British businesses," he said.
"To those who have a bright idea or a small business they want to grow, I will back you."
Perhaps the most significant message for households came when the Chancellor turned to the cost of living.
Healey pledged to "make life more affordable", pointing to the Government's decision to remove VAT from electricity bills as an example of the direction ministers intend to take.
"Today you've seen the way that we have cut tax from electricity bills just to give people a little more breathing space with their household finances in the winter," he said.
The comments are likely to fuel speculation that the Autumn Budget could include further measures aimed at reducing the tax burden on households.
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Prime Minister Andy Burnham has already indicated that the long-frozen £12,570 income tax personal allowance will be reviewed as part of the Budget, although no commitment has yet been made to increase it.
Healey concluded by telling Treasury staff they had a central role in delivering the Government's ambitions.
"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."
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