Growth Commission response to John Healey’s speech on growth

In response to new Chancellor of the Exchequer John Healey’s speech on growth today, Growth Commission Chairman Shanker Singham said:

“Today’s speech from John Healey suggests that the new Chancellor is yet to grasp what is required to return the UK to sustainable economic growth – and his optimistic tone does not match the reality of the country’s economic position.

“The Growth Commission has repeatedly underlined the need to rein in excessive public spending, reduce government debt and cut high taxes which often result in lower government revenues.

“But perhaps the most important move he could have made today would have been to scrap plans for the UK to dynamically align with EU regulations.

“The Government’s plans in this area amount to imprisoning the UK in the slow-growth EU model and then throwing away the key as we cede control over our regulatory framework to Brussels. While many other anti-growth measures implemented by Healey’s predecessor can be reversed, it is imperative that people understand that the plan for regulatory alignment is an extremely damaging one-way street to continued stagnation. The Chancellor cannot want growth and be blind to this reality.”

Growth Commissioner Douglas McWilliams added:

“The Chancellor talks about spreading growth around ‘in every post code’, but you need to create the jam before you can spread it far and wide.

“In particular, it is vital that the Government do nothing to jeopardise the success of the UK tech sector, which accounted for more than a quarter of all the UK’s GDP growth over the last twelve months for which data has been released..And action is also needed to reduce the high taxes currently stifling innovation and investment, and to rein in the bloated public sector which is squeezing growth out of the economy.”

Growth Commissioner Ewen Stewart added:

“I am especially sceptical about the idea that devolving more powers to lower tiers of government will deliver increased growth. The danger is that such a move will have the opposite effect of what is intended and effectively lead to more state direction.

“The Chancellor may talk about growth but so much of what he and colleagues are doing is undermining its long term fundamentals.”

The Growth Commission will publish its Growth Budget 2026 on 1st October 2026, ahead of John Healey’s first Budget.