John Healey has urged G20 countries to step up ‘cooperation’ ahead of an increasingly nightmarish situation Budget.
The Chancellor has held discussions with colleagues in the country North Carolina to push for joint financing mechanisms that could strengthen defense.
Arriving at the summit this afternoon, Mr Healey pointed out the impact of the Iran war on energy prices – saying that no country can cope with such shocks alone.
‘These shocks are being felt worldwide. They are felt in people’s pockets, in their weekly shopping, when they fill up their cars with gas,” he said.
“And so I am here to work with international partner countries to deepen our economic resilience, achieve good growth and also give families and businesses some breathing space.”
Mr Healey also met US Treasury Secretary Scott Bessent Canada‘s Francois-Philippe Champagne and IMF chef Kristalina Georgieva.
The meeting comes as the mood is already turning somber ahead of the budget on October 28.
John Healey meets US Treasury Secretary Scott Bessent (left) at the G20 summit in North Carolina
The cost of servicing the government’s debts has risen, partly due to concerns about Andy Burnham’s ability to keep spending under control.
Figures released last week show that public sector borrowing unexpectedly rose to £1.8 billion in July. That was despite a record July for income tax revenues.
Inflation also rose to a four-month high of 2.9 percent in July, amid the fallout from chaos in the Middle East.
The Chancellor has told the Cabinet that they must be prepared to make cuts to fund some new commitments, amid fears that taxes will also have to rise
He has promised to stick to the budget rules of his predecessor Rachel Reeves.
Mr Healey has long been a supporter of multilateral mechanisms for financing defense projects.
Despite resigning from his post as defense minister after failing to set a timetable for spending 3 percent of gross domestic product on the military, he is not expected to set a schedule for reaching the budget threshold.
Instead, Mr Healey will wait until next year’s spending review.
At Keir Starmer’s final NATO summit as prime minister last month, he and Canada’s Mark Carney agreed to “work closely” on defense financing mechanisms, but stopped short of committing to a merger.
