Chancellor John Healey is set to introduce a £150 million investment fund targeting innovative and fast-growing businesses in northern England, as part of a broader strategy to stimulate economic growth across the UK.
In an upcoming speech on Monday, Healey will outline how public investment will be used to attract private capital, aiming to unlock further funding for the innovation economy and create jobs in underserved areas. The new allocation, drawn from existing funds designated for the British Business Bank, will provide investments ranging from £5m to £15m, with a focus on university spin-outs and ambitious enterprises.
The chancellor is expected to frame the initiative as a continuation of a fundamental shift in governance, stating that the next chapter of Britain’s growth story will be written in more places beyond traditional economic hubs.
The announcement comes against a volatile economic backdrop. Healey faces pressure ahead of his first Budget on 28 October, as government borrowing costs have reached an 18-year high. Additionally, concerns persist regarding the inflationary impact of the war in Iran.
Opposition parties have reacted sharply to the proposal. Conservative shadow chancellor Andrew Griffith argued the plan would do “little to comfort hard-working families and businesses,” noting that government borrowing rates are near a 28-year high. He also criticized the government for avoiding discussions on defense spending, despite Healey’s previous resignation over the issue.
Helen Miller of the Institute for Fiscal Studies expressed skepticism about the feasibility of the government’s wide-reaching goals, stating that driving growth in “literally every postcode” would be significantly harder than strengthening second and third cities.
Liberal Democrat deputy leader Daisy Cooper dismissed the scale of the fund, claiming it would “barely shift the dial on growth” for the entire north of England. Meanwhile, Robert Jenrick of Reform UK characterized the chancellor’s approach as lacking direction during a period requiring economic stability.
These criticisms follow recent scrutiny of Labour’s economic management, particularly after Mayor of the North West Andy Burnham faced questions regarding rising UK debt during Prime Minister’s Questions.
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