John Healey has delivered his first Budget as Chancellor under Andy Burnham\u2019s government, and after reflecting on what he said, I have reached a depressing conclusion: this was a Budget that did almost nothing to address Britain\u2019s economic problems.<\/p>\n
In this video, recorded in a London caf\u00e9 just hours after the Chancellor\u2019s statement, I explain why I believe the Budget represents a serious failure of political and economic leadership.<\/p>\n
Despite the enormous challenges facing Britain, John Healey announced very little that will make a meaningful difference to ordinary people\u2019s lives.<\/p>\n
There were some limited measures intended to reduce household energy costs, including changes to standing charges, an extension of electricity VAT relief and a \u00a3100 rebate for millions of households.<\/p>\n
But these measures must be considered against the much larger increases in energy bills that households could face in 2027.<\/p>\n
With oil and gas prices rising because of the war involving the United States, Israel and Iran, I fear that these modest reductions will be overwhelmed by further increases in household costs.<\/p>\n
The Chancellor also announced changes to bank taxation, but I argue that he missed a much bigger opportunity.<\/p>\n
The government continues to pay substantial interest on commercial bank reserves created through monetary operations associated with the financial crises of 2008 and 2020.<\/p>\n
I have repeatedly argued that reforming these arrangements could save the government around \u00a320 billion a year. Yet the Chancellor has done nothing to address this issue.<\/p>\n
Instead, we have been presented with a Budget that leaves the underlying problems of Britain\u2019s economy untouched.<\/p>\n
And that raises a much bigger political question.<\/p>\n
What is the point of having a new Prime Minister and Chancellor if neither is prepared to deliver meaningful change?<\/p>\n
Andy Burnham\u2019s government had an opportunity to demonstrate a new direction for Britain. Instead, I believe it has shown that it remains trapped within the same neoliberal economic thinking that has dominated British politics for decades.<\/p>\n
The Conservatives, Labour and Liberal Democrats have all operated within an economic framework that prioritises financial markets, austerity and limited government intervention.<\/p>\n
I argue that this political consensus has failed.<\/p>\n
Britain needs something fundamentally different: an economic system that puts people\u2019s needs first, recognises the government\u2019s capacity to act and offers genuine hope for the future.<\/p>\n
Modern Monetary Theory provides a framework for understanding how government can mobilise the resources needed to deliver better public services, greater economic security and meaningful investment.<\/p>\n
What Britain needs now is an economics of hope and a politics of care.<\/p>\n
This Budget did not deliver either.<\/p>\n
But perhaps its failure will help demonstrate why fundamental political and economic change is now essential.<\/p>\n