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Healey Named Chancellor, Pushes 3% Defence Target, Cuts Electricity VAT

7/22/2026

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Healey Appointed Chancellor

On 20 July 2026, UK Prime Minister Andy Burnham appointed former defence secretary John Healey as Chancellor of the Exchequer.
The appointment signals the government will push defence spending toward NATO’s 3 % of GDP target, a point Burnham stressed to NATO chief Mark Rutte.
Healey quit in June 2026, saying the £13.5 billion Treasury offer fell short of threat needs.
VAT exemption on electricity will start in October, funded by ending ID programme, Healey said.

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Burnham appoints Healey

On 20 July 2026 UK Prime Minister Andy Burnham appointed former defence secretary John Healey as Chancellor of the Exchequer.
The administration will place utilities, water, housing and transport under greater public control to ease household expenses.
John Healey resigned as secretary in June 2026, saying plans were underfunded and Treasury resources insufficient.
Martin Lewis urged the chancellor to tackle student-loan repayments, energy bills and household costs.

History

Historical Context

Osborne’s 2010 coalition budget launched Britain’s first post-war-scale austerity, targeting a £110 billion mix of spending cuts and tax rises and reducing public spending by £14.3 billion by 2013. The programme aimed to erase the structural deficit and lower debt, shaping fiscal constraints that today force the Burnham government to grapple with a multi-billion-pound shortfall while pledging a defence-spending target.

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Healey Appointed Chancellor

On 20 July 2026, UK Prime Minister Andy Burnham appointed former defence secretary John Healey as Chancellor of the Exchequer.
The appointment signals the government will push defence spending toward NATO’s 3 % of GDP target, a point Burnham stressed to NATO chief Mark Rutte.
Healey quit in June 2026, saying the £13.5 billion Treasury offer fell short of threat needs.
VAT exemption on electricity will start in October, funded by ending ID programme, Healey said.

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