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Speaking to LBC's Nick Ferrari at Breakfast after delivering his first Budget, the Chancellor defended his decision not to announce cuts to Britain's growing benefits bill as he pledged to reform the sector.
Mr Healey told the Commons on Wednesday he would address the country's welfare bill in a "Labour way".
Asked by Nick what this means, Mr Healey replied: "We've got a million youngsters not in training, not in education, not in employment."
Listen to the full show on the all-new LBC App: https://app.af.lbc.co.uk/btnc/thenewlbcapp
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0:00
Chancellor, as recently as June, the Prime Minister said we'd have an end to neoliberalism
0:05
This was his and your first budget. As the Conservatives pointed out, there's 4p off the price of gherkins, 2p on a pine possibly
0:12
and a return to public private pension. This is not groundbreaking, Chancellor
0:16
I dispute that. They can decry the small things that we're doing, and if we can do them, we should do them
0:23
And I have, taking some of the tariffs off those sort of imports. But I've also frozen fuel duty
0:28
that helps farmers. The boys already have frozen, wasn't it? Where's the big, bold ideas, Chats
0:34
And then the big political choices are there on energy. It isn't just the household energy payment
0:38
and asking the banks to help fund that for households. It is the abolition of standing charges for gas bills
0:46
not being done before and makes people feel like this is really unfair
0:50
I'm having the pay, regardless of how much I use. Beyond that, I'm taking..
0:54
We've seen for 15 years the costs of other policies, put on levies on household bills
1:01
I'm drawing a line on that. But the price cap's set to soar on gas bills, Chancellor
1:05
by over £400 in January. That'll wipe out. Generous as that is, that's wiped out at a stroke in January
1:11
You know that. So that's why I bought the £100 payment to try and help people through the winter
1:15
There'll still be £300 down. But in the end, you can't remove entirely
1:20
the pressures on families and on bills. What you have to do is tackle some of the causes
1:26
that make these bills higher than Europe in the first place. When you're in your defence
1:29
you had a reputation of being fairly plain speaking. The reality is you need a general election, don't you
1:35
to be able to put in the policies that you and Andy Burnham won. That's the truth. Well, there will be a general election
1:40
But now, sooner than when the time is up. But the Prime Minister Andy Burnham has entirely ruled one out for next year
1:45
which is what some people are speculating about. We heard from Kevin Baden-Ock saying in the House of Commons
1:50
complete rubbish. Beyond next year? What we're concentrating on now is giving people a bit of braving space
1:56
both from the cost of living for households and the cost of business for those trying to..
2:00
But beyond next year, could you go after next year for a general election
2:04
Well, this Parliament can run until 2029. Yes, but would you be keen to go to try and..
2:09
Look, near that's a matter from the Prime Minister, but he's absolutely said there will be no election next year
2:15
So, as Chancellor, I'm concentrating now on how do I help people where I can
2:20
with a bit of breathing space on energy bills, actually standing charges on gas bills, extending the VAT cut on electricity bills
2:29
but making sure we deal with a system at the moment that doesn let business compete or households cope and to change that for the long term we have to make some of the big changes to our energy system
2:40
which I'd also, for the first time, set out today. You spoke at length and clearly you feel the need for growth
2:46
Isn't the reality growth would be stronger if we were in the European Union or the single market
2:51
Well, I don't actually accept that. I mean, it's been... It's certain
2:55
Brexit has certainly hit our level of growth. It's certainly hit our level of trade
3:00
but we had a referendum out of the European Union. The challenge for me now is how do we make the best of an economy
3:06
which this year has proved remarkably resilient. But would the return to the single market be another boost, Chancellor
3:12
I read some pretty people suggest worth 4%, 5%. Isn't that the reality, the return to a single market
3:17
That's part of a bigger conversation that the Prime Minister wants the country to have
3:21
because he recognises, and many other people do, that our Brexit deal was not a good one
3:27
And it's not been good for Britain over the last decade. But my job now is to try and make sure you're talking about growth is to try and reinforce that resilience in the British economy
3:36
I'm encouraged that the Office of Budget Responsibility has increased their growth forecast this year
3:43
And really, in the last two years under this Labour government, we've seen government investment up
3:48
Right. We've seen private and business investment up. We've seen productivity up
3:51
and what I've done in the budget is to reinforce the fastest growth firms
3:57
Okay. Those who are innovating that will create the jobs and wealth in the future. When will my listeners feel things are getting better
4:04
Manifestly better? Well, I hope if they're in a business which has got the potential to grow
4:12
they will see this budget and they'll say, look, there's some steps in there to help us. If they are used to going out on their high street
4:19
or working in a shop or a salon, I hope they're going to say, hey, this is a government which wants to back our high street businesses, the pubs, the cafes, the bakeries, the salons
4:31
The pubs are closing at the record rate, Chancellor. So that is the reason that I'm asking vape shops, online sellers, gambling to pay a bit more so that I can take 70,000 of our high street businesses entirely out of business rates
4:45
Because in the end, they're the ones that give our communities their character
4:49
They're the ones that know where we live and the place we love. You talked about the millions of homes getting £100 towards their energy bills
4:56
perhaps zone band A through D. If this is the rental sector, how can you guarantee the landlord will pass on the money
5:03
Well in the end this is the most direct way that we can put money into people bank accounts But it won
5:13
We can't. It will go to the landlord. Well, most people pay their own council tax
5:19
Right. And with the 20 million households, we're hitting four in five households
5:23
And for those that are concerned about, is this well targeted? I would just say to them, look
5:28
nine out of 10 are the poorest households living council tax. You think they will get the money, Chancellor
5:34
Look, whoever's paying the council tax will get this payment, and it will be part of trying to help
5:42
But if it is a landlord, she will get the cash. The precious. And you can't get around that, can we
5:48
The majority of householders tend to pay their own council tax bills
5:52
and generally, in my experience, you find tenants have to pay the council tax too
5:58
You said people and businesses and the economy are feeling the pressure and need breathing space
6:03
How are you feeling the pressure? Well, I'm feeling the pressure by not sleeping
6:07
preparing for a budget, actually. But more broadly, financially, in your pocket or your wallet
6:11
are you feeling pressure? Certainly I'm not, in the sense that, you know
6:16
I'm a government minister and I have a... I would remind you, HB Source has gone up by 9
6:22
over the last 12 months, Chancellor. I mean, you must have felt the pressure of that. Well, I've certainly bought one or two bottles of HB Source
6:29
in the last few months. All right. You also talked about the importance of enterprise
6:33
Quotes, I know starting a company means taking risks. How many companies have you started
6:39
It's not about me, it's the people who are my friends. But you did say that as Chancellor. Do you think you're fully okay with that
6:45
I know you're a journalist, and I know you then worked in the charity. I've done all of that
6:50
Do you really know what it's like to run a pub or a nail salon or a hairdresser
6:53
Well, I think, you know, when you circle of friends, the people you mix with, you drink them in the pub
6:59
The people who are running the sort of kids football club alongside you
7:03
happens for me in Rotherham. They're the ones who are self-employed. They're the ones who are getting businesses off the ground
7:09
And part of my job as Chancellor is to speak to businesses
7:14
be with businesses, visit businesses. And that's part of my job as a government minister
7:20
not necessarily to be doing the business myself, but sufficiently capable of understanding the pressures
7:26
And I hope that those people who are starting up businesses with fast growth potential say, hey, this is a chancellor that's on our side, given the measures I put in the budget
7:36
You want the UK to be a global leader in the sense of data centres Why Do you know how many we got now And why do you want that Why is that so important 100 because unless we have data centres in this country
7:48
then we will not be able to be sovereign, secure and in charge of our own AI future
7:54
But if I were to metaphorically take you to Slough, there are 40 in Slough. You said we will
7:59
protect water supplies. You know how much water obviously there. How are you going to protect
8:04
water supplies. So this is a covenant which will require anybody wanting to build
8:10
and get permission to go ahead with a new data centre to demonstrate the
8:14
community benefit, to control the water supply and to make sure that they create
8:18
good local jobs. Now, you asked me why we need data centres
8:22
How do we protect the water, Chancellor? If we want our NHS
8:25
data to be secure with AI, we have to have it in this country. To have that, we have to have our
8:31
data centres. We've had droughts already. if we have hundreds of water how will you protect the water
8:36
you can't protect the water can you what we said as part of the covenant
8:40
is that they've got to develop their plans for building data centres
8:44
in ways that deals with the water pressures that produces community benefit
8:50
and we've also said because we need this Britain needs this if we can make sure we can be secure about AI
8:56
but also get the opportunities from it we have to have these data centres
9:00
and the system at the moment has been holding them up You said welfare reform will be done, and again, I quote Chancellor, in a Labour way. Could I ask you to expand? What does that mean? How will you reform that sector in a Labour way
9:13
Two things. First of all, we've got a million youngsters, not in training, not in education, not in employment. 60% of them have never worked. And unless we get them off benefits into work, with the experience that allows them to fulfil their potential, then never produce their contribution to the country for the future
9:32
We'll give them support, we'll expect them and require them to take the opportunities we offer
9:38
and that's the way that... The alternative is just crude benefit cuts
9:42
And that, especially when people are suffering at the cost of living, is a pressure too far
9:48
We can bring the benefits bill down, and we will. Prime Minister said that, I've said that
9:53
but we will do it in that Labour way. Lastly, 2007 was when, incredibly, under Gordon Brown
9:59
the production of brown sauce left the United Kingdom. Chancellor, can you give an assurance you'll do everything you can
10:05
to get the production back in the United Kingdom? God, I'd love to do that. If there's a factory opening somewhere in Britain
10:11
that's making HP sauce, I'll be there. I'd like to take you and we'll cut the ribbon together
10:15
Chancellor, thank you for your chance. Very much
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