Healey uses speech to reassure he’s a safe pair of handspublished at 12:36 BST
12:36 BST
Jack Fenwick
Political correspondent, reporting from Liverpool
Much of the talk around Andy Burnham in the weeks leading
up to him becoming prime minister focused on how much he’d be willing to spend.
This time last year Andy Burnham, then the mayor of Greater Manchester, caused a stir at Labour conference when he suggested the
country needed to stop being in hock to the bond markets.
Those comments led some to believe that a Burnham
government may look to spend and borrow more money.
Some of the prime minister’s critics worried that
approach would spook the markets and lead to even higher borrowing costs.
Burnham has since then sought to reassure people and
talked up his belief in economic restraint.
His appointment of John Healey as chancellor was intended
to signal that he’d put a safe pair of hands in the treasury.
And he’s used this speech to stress that he will stick to
the previous government’s fiscal rules, designed to keep the bond markets on
side.
Economically those around the chancellor feel there is no
other option.
But politically that does restrain the government.
One big question being asked by Labour members here will
be whether Burnham and Healey can achieve the sort of change they’ve promised,
while sticking to those rules.