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Chancellor Unveils £150m Fund for Northern Firms to Boost Growth
Confirmed
In Short: Chancellor John Healey is set to announce a £150m fund aimed at supporting fast-growing companies in the north of England, as part of a broader plan to spread economic growth across the UK.
The fund will give local leaders direct access to the British Business Bank’s investment expertise to help develop infrastructure projects, the Treasury said. "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.
However, the plan faces criticism from the opposition. "Healey's plan 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,'" said Shadow Chancellor Andrew Griffith.
What's confirmed
- The fund, from money already allocated to the British Business Bank, will provide investments of between £5m and £15m.
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 speech 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.
- Healey is set to announce a new £150m allocation from the British Business Bank which would offer support to the "most innovative and fast-growing firms".
- 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.
- Mr Healey will detail plans to spread growth more widely across the UK by using public investment to attract private capital.
- 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.
- As part of this, the National Wealth Fund has agreed strategic partnerships with mayoral authorities in South Yorkshire, Liverpool City Region and the North East, as well as Cardiff Capital Region.
- And he will say that growth will help Britain navigate that turmoil with “an optimistic story – one of resilience, pride, huge latent potential”.