Healey launches £150m northern scale-up fund

Chancellor John Healey plans to allocate £150 million to support start-ups in the northern regions of England as part of the government's effort to leverage devolution for economic growth. This new fund, to be announced by Healey at a leading British manufacturing site, will be sourced from the British Business Bank's existing budget and will target university spin outs and other start-ups in Liverpool, Manchester, Leeds, Sheffield, and Newcastle.

Healey aims to back "the most innovative and fast-growing firms" and emphasize that this approach is grounded in supply side economics. The £150 million investment is intended to attract additional private capital into Northern businesses. Healey is expected to highlight the role of "city regions with real power, supported by a stronger state, creating local industrial strategies and using public investment to unlock private investment."

The Chancellor is also expected to outline the government's vision for "good growth" across the country, stating that success is defined by young people finding employment, sole traders securing new contracts, and businesses securing export orders. The £150 million fund will be a key component of the government's broader strategy to persuade voters and business leaders that it has the right approach for economic growth, as articulated by Prime Minister Andy Burnham, who attributes the UK's stagnating growth to neoliberalism, de-industrialization, and austerity.

Healey will also discuss the role of No10 North in driving growth and productivity, emphasizing the need for a strong, strategic center to enable local leaders and their ambitions. The government's commitment to delivering growth in the UK's regions follows Healey's upcoming Budget next month, during which he will face pressure to address concerns about employment costs, business rates, and energy bills.

The Conservatives have criticized Healey's announcement as "policy-light word salad" and questioned its relevance in light of current global threats, including tensions with Russia and Iran.