Chancellor John Healey is set to launch a comprehensive plan aimed at fostering broader economic growth across the United Kingdom, highlighted by a new £150 million fund dedicated to businesses in the north of England.
Healey is expected to outline his strategy on Monday, emphasizing the use of public investment as a catalyst to attract private capital. This initiative comes as the Chancellor faces pressures leading up to his first Budget on October 28, including concerns over rising government borrowing costs and potential inflationary impacts from international events.
The new fund, to be administered by the British Business Bank, will allocate between £5 million and £15 million to support what are described as the "most innovative and fast-growing firms." The aim is to back ambitious businesses and university spin-outs located in the northern regions.
"The next chapter of Britain's growth story will be written in more places," Healey stated, echoing a broader vision for development beyond traditional economic centers. The plan intends to "unlock private investment, to support our innovation economy, and to create the new jobs their areas need."
However, the proposal has drawn criticism. The Conservative party stated that Healey's plan would "do little to comfort hard-working families and businesses." Shadow Chancellor Andrew Griffith echoed this sentiment, expressing concerns about potential tax increases and the high rate of government borrowing, which he noted is near a 28-year high. Griffith also raised questions about defense spending amid geopolitical tensions.
Liberal Democrat deputy leader Daisy Cooper suggested that the £150 million allocated for the entire north of England would have a minimal impact on growth. Robert Jenrick, Reform UK's economic spokesman, criticized the plan as lacking substance during a period of economic uncertainty.
Helen Miller, director of the Institute for Fiscal Studies, acknowledged the aspirational goal of promoting economic growth in "every postcode" but expressed skepticism about its practical implementation, suggesting it might be more feasible to foster growth in second and third-tier cities rather than every locale.