New Chancellor Breaks Silence on Welfare Spending
John Healey has issued his first update on Department for Work and Pensions (DWP) benefit cuts after being appointed Chancellor by Prime Minister Andy Burnham. The surprise appointment came on Monday night, defying widespread speculation that the role would go to Birmingham MP Shabana Mahmood or Ed Miliband.
Healey, who resigned as defence secretary under former Prime Minister Sir Keir Starmer, faced immediate questions from broadcasters about whether he would honour a commitment to spend 3% of national economic output on defence by 2030.
Fiscal Credibility and National Security
Asked if welfare cuts or new taxes would be necessary to meet the defence spending target, Healey stated: "Fiscal control is the first duty of any chancellor. It is mine. And fiscal credibility is the bedrock for economic stability and for national security."
He added: "You heard the Prime Minister this afternoon say, in this more dangerous world, we will meet our commitments on defence to our international allies."
Cabinet Reshuffle and Appointments
Healey, who had been defence secretary until last month when he resigned over lack of funding, now becomes the PM's top minister and neighbour in Downing Street. Ed Miliband, initially seen as the favourite for chancellor, will instead become Foreign Secretary after reports suggested his appointment would be unacceptable to the city and unions.
Shabana Mahmood was tipped for the role, but sources close to the home secretary indicated she did not want to leave her current position. The Cabinet, finalized on Monday evening by Burnham, also includes Yvette Cooper as health secretary and Wes Streeting as defence secretary.
Healey's first comments signal a focus on fiscal discipline while balancing defence commitments, with implications for the DWP welfare bill and potential benefit cuts.
