Conservatives urge John Healey to deliver 'get a grip' Budget

The Conservatives have urged Chancellor John Healey not to hike tax in the budget in five "tests".

Andrew Griffith, the Shadow Chancellor, said Mr Healey must commit to no new taxes when he unveils his first budget on October 28.

He said: "Labour's first two budgets put taxes on course for the highest level ever recorded, and families and businesses are continuing to pay the price.

"John Healey must deliver a 'get a grip' Budget, instead of kicking the can down the road."

The Shadow Chancellor then laid out five tests he expects Mr Healey to meet.

These include cutting the budget deficit, slashing welfare, increasing defence spending and increasing youth employment.

Mr Griffith also pointed to Mr Healey's own resignation as Defence Secretary under Sir Keir Starmer to demonstrate the need for defence investment.

He added: "These tests are simple, and Labour have already set one themselves.

"When he resigned as Defence Secretary, John Healey said that three per cent of GDP on defence spending is 'what Britain must set'."

The Shadow Chancellor told GB News at the Conservative Party Conference how he would approach the Budget if he were to enter No11.

He said: "As Chancellor, I would tell the truth about the state of the nation's finances, which are pretty dire, but every single pledge we make will be fully costed.

"A lot of that from reducing the out-of-control welfare spending, but also reducing the size of the state, the overseas aid budget and other measures."

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Mr Griffith, who was formerly the Chief Operating Officer at Sky, laid out his party's policies - namely "keeping money in people's own pockets, helping young people into work through our national insurance cuts, and building prison places to keep criminals off our streets".

The Conservative "tests" come as the bosses of Britain's biggest City groups intensified calls for the Chancellor not to raise taxes on banks.

In a letter to Mr Healey, senior City figures including the chief executives of UK Finance and the CBI said Britain's financial services industry "already faces a higher tax burden than our key international competitors".

The group argued that banking businesses are more likely to move their offices outside of the UK and to other financial hubs if taxes increase.

Executives from Marks and Spencer and John Lewis also urged Mr Healey to rule out a "warehouse tax" on online retailers to pay for tax breaks for high street shops.

Jason Tarry, the chairman of John Lewis, accused Labour of making decisions based on "a fundamental misunderstanding of how modern high streets work".

But it is now said the tax on large online retailers has been ruled out by Mr Healey.

A Treasury spokesman said: "The Chancellor has been clear that fiscal discipline underwrites every promise this Government makes, which is why he and the Prime Minister are in lockstep on meeting the fiscal rules.

"His focus is on backing British jobs, giving families and businesses breathing space and driving growth in every postcode, and he will set out decisions on October 28."