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Chancellor to unveil growth plan with £150m fund for northern firms
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In Short: Chancellor John Healey is set to unveil a £150m fund for companies in the north of England as part of a broader plan to generate more economic growth around the UK.
Chancellor John Healey is set to unveil a £150m fund for companies in the north of England as part of a broader plan to generate more economic growth around the UK. The fund, from money already allocated to the British Business Bank, will provide investments of between £5m and £15m to the 'most innovative and fast-growing firms.
The announcement comes against a challenging backdrop as the chancellor faces pressures ahead of his first Budget on 28 October, including concerns about a jump in government borrowing costs and the inflationary impact of the Iran war. Shadow Chancellor Andrew Griffith criticized the plan, saying it would do 'little to comfort hard-working families and businesses across the country who are worried about more tax rises or the fact that government borrowing rates are near a 28-year high.
The fund will give local leaders direct access to the fund’s investment expertise to help develop infrastructure projects, according to reports. Mr Healey will also task the British Business Bank and National Wealth Fund with doing more to support investment and innovation across the UK. As part of this, the National Wealth Fund has agreed strategic partnerships with mayoral authorities in South Yorkshire, Liverpool City Region, the North East, and Cardiff Capital Region.
The next chapter of Britain’s growth story will be written in more places,' Healey will say, adding that No 10 North was set up as 'a strong, strategic centre wired to enable local leaders and their ambitions' by 'removing obstacles' and red tape. The Treasury hopes the fund will draw in additional private cash, as part of Mr Healey’s vision of an 'active state' working with private businesses to create opportunity.
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What's still developing
- She said it would be easier to see how the government could make stronger second and third cities than to see "how it would drive growth in literally every postcode".
- The Chancellor will unveil a £150 million fund for fast-growing northern firms as he sets out plans to grow the economy through an “active” state.
- And he will say that growth will help Britain navigate that turmoil with “an optimistic story – one of resilience, pride, huge latent potential”.
Sources
- The Independentlink