John Healey’s first Budget speech descended into parliamentary disorder within minutes on Wednesday as Conservative MPs erupted into laughter when the Chancellor praised his predecessor Rachel Reeves for bringing “fiscal discipline” to Britain.
Healey, the former defence secretary, began by paying tribute to Reeves as the country’s first female chancellor in more than 800 years. But his claim that she had brought discipline to the public finances prompted jeers from the Tory benches, forcing him to pause as deputy Speaker Nusrat Ghani demanded order.
“Colleagues who are chuntering will need a lot of stamina,” she warned. “We’ve got many hours to go, so let’s keep the chamber calm.”
When Healey resumed, he sought to frame the Budget as a response to mounting pressure on households and businesses, promising support with the cost of living while insisting that fiscal discipline remained his first commitment.
The Chancellor said the Office for Budget Responsibility had upgraded its UK growth forecast to 1.2 per cent this year, with growth expected to reach 1.8 per cent in 2029. Britain, he argued, had beaten expectations and could do so again.
His headline household measure was a £100 payment for about 20mn households in council tax bands A to D, costing £2.6bn. He urged devolved administrations to provide equivalent support across the UK.
Healey also announced a 3.9 per cent increase in the national minimum and living wages for 2.3mn workers, while confirming that the annual tax-free cash Isa allowance would remain at £20,000.
The opening confrontation exposed the political challenge facing the Chancellor: persuading voters that his measures can ease financial pressure while convincing sceptical MPs that the government’s economic strategy deserves their confidence.
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