UK Finance Leaders See Steady Hand in Healey as New Chancellor

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessUK Finance Leaders See Steady Hand in Healey as New ChancellorBritain’s financial industry welcomed John Healey’s appointment as chancellor of the exchequer, hoping the Treasury’s seventh occupant this decade will deliver stability.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Britain’s financial industry welcomed John Healey’s appointment as chancellor of the exchequer, hoping the Treasury’s seventh occupant this decade will deliver stability.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountWhile Healey has yet to set out his fiscal agenda, senior figures in the City of London say they are relieved Andy Burnham chose him over candidates viewed as more interventionist, including Ed Miliband.“Healey knows his way around the Treasury, which I think should be a good thing,” said Steven Fine, chief executive officer of UK investment bank Peel Hunt Ltd. He said the new chancellor “seems a very sensible pair of hands in which to give the fiscal responsibility of the country.”Yields on UK 10-year bonds reached two-month highs on Monday, responding to global uncertainty as well as the risk of economic headwinds at home. This measurement is particularly closely watched after the meltdown that followed Liz Truss’s 2022 budget, which contained several unfunded spending commitments.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againAvoiding such market turmoil while navigating spending commitments — potentially including Healey’s own previous demands for more defence funding, as well as Burnham’s plans on the cost of living — is the financial district’s biggest plea. “If bond yields are stable, if the currency is stable, if the stock market is stable, businesses can start to plan,” added Fine. “That’s what businesses desperately crave: stability.”Speaking at the first cabinet meeting on Tuesday, Healey said he will uphold “fiscal credibility” as the way to economic growth and national security. Healey takes over a roster of policies that his predecessor Rachel Reeves set out to promote economic growth in the UK, which has lagged behind other rich nations for much of the past decade. Reeves has stripped back regulation for parts of the financial markets and tried to push more private investment into UK assets, while also increasing tax obligations for employers to help balance the books. “The key issue for markets will be whether the new chancellor avoids policies that are overtly anti-growth and maintains a credible fiscal framework,” said Matthew Beesley, CEO of Jupiter Fund Management Plc. “Investors will want policy clarity, discipline and a growth agenda that supports business investment without undermining confidence in the public finances.”Healey was a surprise pick as chancellor, with Burnham selecting him on Monday over Miliband, the former energy secretary who now moves into the Foreign Office, and Shabana Mahmood, who continues as home secretary. “If you stopped people in the street, no one would have heard of him, which is probably a good thing,” said Alyx Wood, chief investment officer of UK-focused hedge fund Kernow Asset Management. “He genuinely should bring some middle ground common sense, whereas the other two options are a bit more extreme, one on the left and one on the right. He’s a solid, center ground, common sense kind of guy.”Less than a day into Healey’s tenure, the finance world is already looking ahead to his first budget speech, which would traditionally take place in the autumn. This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.“We need a budget date and a clearer sense of the themes — whether that means a benefits overhaul, faster defence investment, a re-examination of stamp duty on shares and property, frozen income tax thresholds, whether capital gains tax will change,” said Mark Wood, an insurance industry veteran who chairs London-listed fintech firm PensionBee Ltd.Still, he’s familiar to many in the Square Mile. Healey, 66, spent years as a junior Treasury minister when Tony Blair was in Downing Street. Most recently he was defence secretary, resigning from that job last month after struggling to increase military spending, ushering in the end of Keir Starmer’s government.“We have already had very close collaboration with the chancellor because we have worked with him on financing the defense industry,” London Stock Exchange CEO Julia Hoggett said in an interview.For the finance world, another question is who will be pensions minister. The role, most recently held by Torsten Bell, has changed hands four times in the past four years. Private pensions have undergone huge changes over the past decade and a half, when employers were required to set up and help fund workers’ savings plans.“Auto-enrolment has been a massive success but change needs to happen,” said Andy Briggs, CEO of Standard Life Plc. “While this cannot happen overnight, we should be setting a clear path towards increasing contribution rates from 8% to 12% gradually over time.”“We also need to see policy stability during this parliament to help ensure the markets remain calm and the UK is seen as an attractive place to invest,” Briggs added. “This will enable the economy to grow which will benefit the wider public and help our customers achieve better outcomes and greater financial security in later life.”—With assistance from Meg Short, James Booth and Charles Capel.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. 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