Chancellor tells Labour conference it’s ‘not progressive’ to fail to balance books amid rising welfare bill as borrowing costs climb to record high

• Business live - latest updates

• Price of diesel on UK forecourts reaches all-time high

John Healey has pledged to use next month’s budget to inject hope into Britain’s economy while sticking to the government’s fiscal rules, arguing there is “nothing progressive” about losing control of public finances.

In his first speech as chancellor to Labour conference, Healey warned that next month’s highly anticipated tax-and-spending event would need to take into account a challenging global backdrop.