John Healey unveils £150m fund for northern firms in an effort to boost growth
Chancellor John Healey has announced a £150 million fund directed at fast-growing northern enterprises as part of a new regional economic strategy ahead of the upcoming budget.
John Healey has announced a new regional economic strategy anchored by a multi-million-pound injection for northern enterprises, as reported by LBC. The Chancellor used a major speech on Monday to pledge that regional development will drive the country's economic future ahead of looming fiscal challenges, according to reporting from the Mirror. The strategy aims to ensure that economic growth extends beyond the UK’s biggest cities and reaches more parts of the country.
The core of the Chancellor's package centres on a £150 million fund aimed at the North of England's most innovative and fast-growing firms, as detailed by Yahoo! Finance Canada. Drawn from money already allocated to the British Business Bank, the capital is structured to provide individual investments ranging between £5 million and £15 million. This capital is intended to back university spin-outs—companies formed from academic research—alongside other ambitious enterprises across the region. Treasury details indicate that the funding seeks to use public investment to attract private capital, support the innovation economy, and create new jobs.
Media additions
Complementing this corporate backing, the National Wealth Fund has agreed to enter into strategic partnerships with several regional bodies. These include the South Yorkshire Mayoral Combined Authority, the Liverpool City Region Combined Authority, the North East Mayoral Strategic Authority, and the Cardiff Capital Region. According to Treasury information, these partnerships grant local leaders direct access to investment expertise to help develop project pipelines, attract public and private finance, and deliver key infrastructure. The Chancellor stated that No 10 North was established as a strategic centre to assist local leaders by removing obstacles and cutting red tape.
The economic strategy arrives at a tense political moment. As outlined by the Mirror, the Chancellor warned of a tough upcoming budget shaped by global pressures, including conflict in Iran and rising government borrowing costs. Economists have cautioned that these pressures could squeeze fiscal buffers built by predecessors, leaving policymakers weighing potential tax rises or departmental spending cuts. Government borrowing costs have reached notable multi-year highs, with long-term borrowing costs described as the highest since 1998 ahead of the fiscal announcements.
| Measure / Initiative | Financial Scope | Target / Region |
|---|---|---|
| British Business Bank Scale-up Fund | £150 million total (£5m–£15m per investment) | Fast-growing firms and university spin-outs in the North |
| National Wealth Fund Partnerships | Advisory and capital access | South Yorkshire, Liverpool City Region, North East, Cardiff Capital Region |
| Corporate Reporting Overhaul | £450 million in annual savings | Family firms and businesses across the UK |
Reaction from political opponents and policy experts was swift and divided. Helen Miller, director of the Institute for Fiscal Studies, noted via Yahoo! Finance Canada that while regional growth is an attractive goal, achieving it across every postcode would prove difficult in practice. Meanwhile, shadow chancellor Andrew Griffith criticised the proposals as a policy-light word salad
that would do little to comfort families worried about rising taxes and borrowing rates, as reported by Lbc. Conservative figures also questioned the omission of defence spending commitments, while Liberal Democrat deputy leader Daisy Cooper argued that re-announcing the regional sum would barely shift the dial on growth. Reform UK's economic spokesman, Robert Jenrick, added criticism regarding the government's economic direction following recent market pressures.
Ministers also published plans to reduce outdated corporate reporting rules to free family firms and businesses from excessive paperwork, with the government estimating annual savings exceeding £450 million. The broader debate over regional devolution touches upon discussions regarding industrial policy and state intervention, reflecting Prime Minister Andy Burnham's long-standing push to place place at the heart of government strategy.
What to Watch Next
- The Chancellor's first Budget, scheduled for October 28, which will test the government's fiscal headroom and borrowing strategy.
- Further legislative details regarding the planned cuts to outdated corporate reporting rules intended to save businesses over £450 million annually.
- The rollout of the British Business Bank investments and the operational progress of the newly established National Wealth Fund regional partnerships.
