A Warm Welcome to the Treasury
It is with great honour that I stand alongside Emma Reynolds, our newly appointed Chief Secretary to the Treasury. For me, returning to the Treasury as Chancellor is a significant privilege—one that I have long awaited. Nearly two decades have passed since I last held a position here as a Treasury minister. Looking around, I am delighted to see a multitude of bright, young, and dedicated officials in this esteemed institution, reminiscent of my earlier days. There are also a few familiar faces, including James, who has perhaps gained a bit of wisdom and grey hair since our last encounter. As for me, I remain as bald as ever, yet my passion for this institution continues to burn brightly. The Treasury represents stability, security, and growth—a vital force for a prosperous Britain.
Facing Challenges in a Tougher World
Today, the notion of a successful Britain is set against the backdrop of a much more challenging global landscape. This is the mission that lies at the heart of our government. I would like to take a moment to acknowledge the accomplishments of my predecessor, Rachel, the previous Chancellor. Her contributions to the nation have been invaluable. She instilled financial discipline, facilitated growth, and delivered two comprehensive budgets alongside a spending review. Thanks to her efforts, our government has made significant strides, including reducing NHS waiting lists and decreasing child poverty by 450,000 while also fostering a resurgence in investment.
Rachel will always be remembered as the first female Chancellor in nearly 700 years of our history, and for that, I extend my deepest gratitude and admiration.
Lessons from the Past and the Path Forward
When I departed the Treasury in 2008, it was just as the global financial crisis began to take hold, leading to austerity measures, sluggish growth, and a prolonged period of stagnant living conditions. The repercussions of that crisis and the political decisions made in its wake continue to shape public sentiment regarding those in power. There is a palpable yearning for hope within our communities.
The new Prime Minister, Andy Burnham, along with his cabinet, is committed to reversing this trend swiftly. As he has articulated, our focus will be on enhancing the quality of life for individuals, prioritising investment in their success rather than merely addressing failures.
Defining Priorities for Economic Stability
However, we must acknowledge the substantial challenges that Britain still faces: low growth, high debt, pronounced inequality, and strained public finances, all exacerbated by rising international threats to both our economy and security.
As Chancellor, my foremost responsibility is to maintain fiscal control. Here are my five key priorities:
First, fiscal discipline is essential. Fiscal credibility forms the foundation of economic stability and national security. We will adhere to our fiscal rules, and Andy Burnham and I are committed to navigating this journey in unison, ensuring we possess a buffer against uncertainty.
Second, we will strive for growth in every postcode. Every government department will be designated as a growth department. We aim to maximise public investment within our fiscal framework while capitalising on private and international investments to robustly support Britain.
Investing in British Potential
Thirdly, we will reinforce our commitment to backing Britain. This means British benefits, apprenticeships, and jobs. For every procurement pound spent, we will prioritise purchasing British by design, particularly in sectors like transport, energy, defence, AI, and technology.
Fourth, we must focus on wealth creation. Our governmental initiatives will foster greater confidence in investment, innovation, and profitability among British businesses. I want to assure entrepreneurs and small businesses with promising ideas that we stand ready to support your growth.
Lastly, we must work towards making life more affordable for our citizens. This entails reducing the cost of living and initiating a new era of devolution and public control—not merely as political slogans but as guiding principles for our decisions in government. Today, we have taken a step towards this goal by implementing tax cuts on electricity bills, providing families with some much-needed financial relief as winter approaches.
A Vision for a New Economy
This is our pathway to building a new economy, fostering renewed hope, and advancing the interests of working people across the nation. As I conclude, I want to express that the most profound and humbling experience for me is to be surrounded by such a remarkably talented group of government officials. I eagerly anticipate collaborating with each of you and the ministerial team as we forge ahead in the coming months.
Together, we will do Britain proud. Thank you, and I look forward to our shared journey ahead.