Chancellor to unveil growth plan with £150m fund for northern firms

Chancellor John Healey is expected to announce a £150 million fund to support northern English companies as part of a broader strategy to stimulate economic growth across the United Kingdom. In a speech on Monday, Healey aimed to boost development by leveraging public investment to attract private capital. The announcement comes amidst a challenging period for the chancellor, who faces pressures ahead of his first Budget on October 28th, including concerns over rising government borrowing costs and the inflationary effects of the Iran war.

In response to Healey's proposal, the Conservatives criticized the plan, stating that it would not significantly benefit hard-working families and businesses. Healey intends to allocate £150 million from the British Business Bank to assist the most innovative and rapidly expanding firms. The fund, derived from existing British Business Bank resources, will provide investments ranging from £5 million to £15 million, targeting university spin-offs and other ambitious businesses throughout the northern regions.

Healey is anticipated to remark, "The prime minister laid out a clear diagnosis of what has gone wrong in the past. The solution is a fundamental shift that starts with putting power in the right places." The chancellor's statement emphasizes a nationwide approach to economic growth, with Helen Miller, director of the Institute for Fiscal Studies, acknowledging the challenge of achieving growth in every postcode.

During a recent Prime Minister's Questions session, Andy Burnham faced questions over rising UK borrowing costs, with Conservative leader Kemi Badenoch urging him to outline his strategy for addressing the country's growing debt. Burnham attributed the increasing borrowing costs to the previous Tory administration and pledged to prioritize fiscal responsibility.

Shadow chancellor Andrew Griffith dismissed Healey's plan, asserting it would not alleviate concerns among hard-working families and businesses about potential tax increases and high government borrowing rates. Liberal Democrat deputy leader Daisy Cooper dismissed the announced funding, arguing that it would have minimal impact on growth.

Robert Jenrick, representing Reform UK's economic interests, criticized Healey's announcement, asserting that the chancellor appeared to lack insight into how to revive the economy, particularly amid recent market instability.