John Healey, a veteran Labour minister with Treasury experience, replaces Reeves, signaling a shift toward interventionist fiscal policy and higher spending.
John Healey has been named UK Chancellor of the Exchequer, succeeding Rachel Reeves in a move that surprised markets. Healey, a long-serving Labour minister, previously held roles as Economic Secretary and Financial Secretary to the Treasury under Tony Blair and Gordon Brown, giving him direct fiscal policy experience.
The appointment follows Prime Minister Keir Burnham’s promises of a 10-year economic plan, cost-of-living measures, and increased housing and defense spending. Healey’s background in housing and local government aligns with Burnham’s agenda, though questions remain over fiscal credibility amid expectations of higher public expenditure.
Markets are watching for signals on tax policy and borrowing plans, with early indications pointing to a more interventionist Treasury than under Reeves.