New Chancellor John Healey guarantees ‘purchase British’ blitz in authorities overhaul
New Chancellor John Healey has ordered government departments to ‘buy British’, promising a focus on UK goods and services on a sclae
Chancellor John Healey has promised an overhaul of the way contracts are awarded(Image: Getty Images)
Government departments have been ordered to “buy British”, Chancellor John Healey has said in an overhaul of procurement rules.
Former Defence Secretary Mr Healey said every pound spent will support British jobs. He promised that under his watch there would be a “determined drive” to focus on UK goods and services on a scale never seen before.
The Treasury chief – who was Andy Burnham’s first appointment when he became Prime Minister on Monday – said he wants to roll out the ethos he had at the Ministry of Defence (MOD) across government.
Mr Healey said: “You will see this as a determined drive that you have not seen before from a British government. Buying British not ‘if possible’, but by design. So every procurement pound supports British jobs, British apprenticeships and British skills.”
In an interview with The Sun, he pointed out that when he was Defence Secretary. over 86% of the 1,200 major defence contracts handed out went to British firms.
He said: “I am as concerned about the cost of business as I am the cost of living. I am really concerned that where we make government policy and government decisions, these can help raise the levels of investment, innovation and profit in British business.”
In their first week in government, Mr Burnham and Mr Healey announced an end to VAT on household electricity bills and a £2 bus fare cap across England, outside London. They also announced plans to slash business rates for pubs and small music venues by 20% in a major boost for the struggling sector.
Asked where the money will come from, he said: “Fiscal credibility is the bedrock of economic stability. Both Andy and I have talked about how we will work in lockstep to meet the fiscal rules and ensure we have got a buffer against uncertainty.”
The Chancellor will set out his first Budget in the autumn after replacing Rachel Reeves, who returned to the backbenches at the start of the week. One of his major challenges will be to find £5billion to fund extra spending in the defence investment plan (DIP).
The government is yet to set a timetable for reaching 3% of the UK’s gross domestic product (GDP) on defending the nation. Mr Healey told the Sun this was “not a matter for this first week”.
Mr Burnham has vowed to build a country where “nobody is written off” and everyone is treated with respect. The new PM swooped into power on Monday, and immediately moved to cut business rates for pubs, bring in a £2 cap on bus fares, and slash VAT on energy bills.
In a pledge to go further, the former Greater Manchester Mayor claimed he was used to being told things can’t be done, and that the era of Government’s giving up trying to solve the issues impacting people was over.
Writing for The Mirror, Mr Burnham claimed this week had shown how politicians could make lives a “little bit easier”, but that his job won’t be done until people aren’t just living, but “living well’.
