t the exact words John used. The second sentence contains an indirect quote, which is a paraphrased version of what John said. Quotes are used only with direct quotes.
https://www.quotespace.org
This rule is not just for talking. If you are citing a written source, you should put quotation marks around the citation unless you plan to paraphrase it.

Budgets in block and in execution

Direct quotes come in two different forms: run and block. Direct quotes are shorter and have the same formatting as the surrounding text. Block quotes are long quotes that are separate from the surrounding text. They usually appear as a separate paragraph (or a series of paragraphs) with a different font, a change in line spacing, or a wider margin. In any case, block quotes do not need quotes to distinguish them from other text, even if they are direct quotes.

And in case you're wondering how long a quote should last to be a block quote, it varies from style guide to style guide. If you have to follow a style guide, you should refer to it for best practices. If you don't have to