Industry bodies urge new chancellor to prioritise housing costs and lending reform
John Healey has been appointed Chancellor of the Exchequer by Prime Minister Andy Burnham, bypassing both Shabana Mahmood and Ed Miliband for the role.
Government sources described Healey as someone who will execute Burnham's agenda rather than independently shape one.
Healey has been a Labour MP for South Yorkshire constituencies since 1997, having previously worked in disability rights campaigning and as campaigns director for the TUC. He served as Minister of State for Housing and Planning under Gordon Brown and, after Labour's return to opposition, held shadow cabinet roles covering housing and defence. Following Labour's 2024 general election victory he became Secretary of State for Defence, resigning from the post in June 2026 in a dispute over defence spending levels.
It is the greatest privilege to be appointed Chancellor of the Exchequer by the Prime Minister.
— John Healey (@JohnHealey_MP) July 20, 2026
Together, we will build a new economy, build new hope and advance the working people of this country.
Time to get on with the job. https://t.co/RQHEMMUxip
Nigel Green (pictured right), chief executive of financial advice firm deVere Group, said Healey's appointment reversed assumptions that had underpinned a recent market rally.
"Markets rallied recently on the assumption that a fiscally cautious figure would sit between Burnham and his own instincts on tax," Green said. "This theory no longer holds. Investors should reprice UK assets with that in mind."
He pointed to Healey's spending record as indicative of likely fiscal direction. "Healey resigned from Cabinet last month demanding more money for defence and has pushed for spending to reach 3% of GDP by 2030," Green said.
"He now runs a Treasury under a Prime Minister who has ruled out raising income tax, VAT and National Insurance. That spending has to be funded somewhere, and wealth, capital gains and property are the obvious remaining options.
"A wealth tax, an exit charge on departing assets, and a further rise in capital gains tax all look more likely with Healey at the Treasury than they did with Mahmood. Burnham has removed the appointment that gave markets a reason for confidence."
Meanwhile, Nathan Emerson (pictured right), chief executive of industry body Propertymark, said the housing market would be among the areas requiring Healey's attention.
"Although the year started with quiet confidence in the housing market, there have been sizeable difficulties to contend with in terms of global unease," Emerson said. "While we have seen inflation progressively start to approach its target and base rates hold steady, there is a much wider picture for John Healey to consider, as he takes on the role of Chancellor of the Exchequer.
"Housing remains fundamental to economic growth, with issues such as Stamp Duty for those buying a property in England or Northern Ireland, as well as taxation frameworks affecting many landlords in the private rented sector, all in need of review and potential restructuring."
The Finance & Leasing Association (FLA) also used the announcement to call for reform of consumer credit rules that it said were hindering business lending.
"The government has rightly made economic growth its priority," said Shanika Amarasekara (pictured right), chief executive of the Finance & Leasing Association. "Achieving that ambition means giving businesses the confidence to invest, backed by a regulatory framework that supports rather than hinders growth.
"Modernising the Consumer Credit Act would create a simpler, more proportionate regulatory framework that reflects today's economy, improves access to responsible finance and helps deliver the government's ambitions for sustainable economic growth."
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