Chancellor Healey told his party conference that the levels of public spending and fiscal room available during the New Labour era of the 1990s “is simply not there now,” and pointed to a combination of austerity policies, Brexit and the mini‑budget introduced under Liz Truss as reasons for weaker economic growth when compared with the period under his predecessor, Gordon Brown.
Addressing delegates, Healey said he would adhere to the government’s fiscal rules as he prepares a forthcoming budget that he characterised as being “built on hope,” signalling a cautious approach to public finances even as he sought to outline a growth strategy.
Healey’s remarks framed the government’s economic options as constrained by past policy decisions and external shocks, a line intended to explain why benchmarks from the 1990s are not a realistic guide for current spending plans. He did not put new figures to delegates in the address, but emphasised the need for fiscal discipline while pursuing growth.
The conference commentary came alongside growing political tensions in Northern Ireland. Claire Hanna, leader of the Social Democratic and Labour Party (SDLP), urged the appointment of an international mediator to help resolve a dispute over a unionist parade near Drumcree, the site of some of the worst violence during the Troubles almost three decades ago.
Hanna told reporters that any successful mediation would require both sides to want to compromise. “The truth is everybody has got to want to seek mediation and seek compromise and that’s what I’m trying to find, whether there’s that little chink on both sides that we can use to get to a decent compromise that means everybody can walk away with their head held high and their sense of honour,” she said.
Both Healey’s fiscal caution and calls for external mediation in Northern Ireland underline the political challenges confronting the government as it balances economic management with deep, locally rooted disputes that remain potent across parts of the UK.