Chancellor John Healey to Announce £150 Million Fund for Northern Firms

Chancellor John Healey is scheduled to announce a £150 million fund aimed at supporting companies in the north of England as part of a broader initiative to stimulate economic growth across the UK. In a speech on Monday, Healey is expected to present his strategy for enhancing development through public investment designed to attract private capital. This announcement occurs amid challenges, including rising government borrowing costs and concerns related to the inflationary effects of the ongoing conflict in Iran, as Healey prepares for his first Budget on October 28. The Conservative Party has criticized the plan, stating it would provide little reassurance to families and businesses. The new fund, allocated from the British Business Bank, is intended to assist the most innovative and rapidly growing firms, with investments ranging from £5 million to £15 million. It aims to support university spin-outs and other ambitious enterprises in the region. Healey is expected to emphasize the need for a fundamental shift in economic strategy, stating, "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 next chapter of Britain's growth story will be written in more places." Helen Miller, director of the Institute for Fiscal Studies, commented on the challenges of achieving economic growth in every area, suggesting it may be more feasible to strengthen secondary cities. During Prime Minister's Questions, Andy Burnham faced questions regarding the rising borrowing costs, with Conservative leader Kemi Badenoch pressing for solutions to the increasing national debt. Burnham attributed the situation to the previous Conservative government, asserting his administration would prioritize fiscal responsibility. Shadow Chancellor Andrew Griffith expressed skepticism about Healey's plan, noting concerns regarding potential tax increases and high government borrowing rates. Liberal Democrat deputy leader Daisy Cooper remarked that the £150 million allocation would have minimal impact on overall growth. Reform UK's economic spokesman, Robert Jenrick, criticized Healey's approach, suggesting a lack of direction in addressing the economic challenges.