UK finance minister Healey seeks growth through decentralising power

Britain's finance minister, John Healey, will address investors' concerns about inflation, budget constraints, and rising spending commitments ahead of his October 28 budget speech. In his first major speech since taking office seven weeks ago, Healey will discuss how Prime Minister Andy Burnham's plan to decentralise power can stimulate economic growth throughout the country.

At a manufacturing site on Monday, Healey is expected to unveil plans to grant city regions greater authority in shaping local industrial strategies and enticing private investment, aiming to boost prosperity across all regions. Healey emphasized the need for an active, accountable state at every level to eliminate obstacles and create an environment conducive to increased investment.

Additionally, Healey will highlight his commitment to fiscal discipline while striving for economic growth in Britain's underperforming economy. As investors grapple with the inflationary effects of soaring oil prices from the Iran conflict, dwindling budgetary flexibility, and mounting spending obligations, Healey will allocate £150 million (£203 million USD) from the British Business Bank to support innovative firms in northern England, with an additional £5 million to £15 million aimed at luring more private capital.

Healey and Burnham have pledged adherence to the fiscal rules set by the previous administration, including a goal of balancing day-to-day spending with tax revenues by the end of the decade. However, given Burnham's intentions for expanded social care and heightened defence expenditure, Healey faces pressure to raise substantial sums in taxes during the budget.