Chancellor John Healey is right to pledge fiscal discipline ahead of his first Budget next month. The idea that markets can be ignored and that Britain can just spend its way out of trouble only works in the realm of student politics.

The reality is far harsher and the Government cannot afford to just ignore the bond markets in order to deliver an ideologically driven spending spree. The mini-Budget delivered by Kwasi Kwarteng in 2022 was a vivid illustration of what happens when naive thinking is allowed to prevail.

But the challenge that faces Healey is not just one of balancing budgets. Rather it is delivering policies that will deliver meaningful improvements to the hardworking taxpayer’s life, stimulate the economy and underpin the nation’s security.

And it is defence spending where all eyes will be on the upcoming Budget. It was only a few months ago that Healey resigned from Sir Keir Starmer’s Government as Defence Secretary, precipitating the end of the previous administration, citing that the Treasury was unwilling to make the necessary commitments on defence spending.

Chancellor of the Exchequer John Healey delivers a speech on economic growth.

placeholder image — Chancellor of the Exchequer John Healey delivers a speech on economic growth.

Britain’s economy cannot continue to carry an ever growing number of passengers.

That’s why the partnership between the Government and retailers, aiming to create 100,000 jobs for young people not in employment, education or training (Neet) within the current parliament, is a positive step. With an aging population it would be a major mistake to allow close to a million young people to sit at home with no employment or further training that could lead to jobs. While these sort of initiatives send out the right message, it is a reminder that businesses cannot continue to be hit with punitive tax rises. That would only lead to employment opportunities being pared back and the economy continuing to stall.