Chancellor John Healey to unveil growth plan with £150m fund for northern firms

Chancellor John Healey is planning to announce a £150 million fund to help businesses in the north of England grow faster. The money would come from the British Business Bank and go to companies seen as the most creative and fast-growing. Individual grants will range from £5 million to £15 million per business. Healey says the goal is to use public money to attract private investment and create new jobs across the region.

The fund is expected to support university spin-outs — companies that grow out of university research — as well as other ambitious businesses across the north. Healey wants to show that economic growth does not have to happen only in London and that other regions of the UK can succeed too. In his speech, he is expected to say: 'The next chapter of Britain's growth story will be written in more places.'

The announcement comes at a difficult time for the government. The cost of government borrowing has risen to an 18-year high, meaning taxpayers may face higher costs down the road. The chancellor also faces pressure ahead of his first Budget on 28 October, with concerns about rising prices linked to the conflict involving Iran. These challenges have made some people question whether now is the right time for big spending announcements.

Prime Minister Andy Burnham was also questioned in Parliament this week about the UK's rising debt. Conservative leader Kemi Badenoch urged him to explain how he would manage the country's finances. Burnham blamed the previous Conservative government for the debt problems and promised his administration would be 'grounded in fiscal responsibility.' This back-and-forth showed how much pressure the new government is under.

Not everyone thinks Healey's plan will make a big difference. Helen Miller, director of the Institute for Fiscal Studies, said growing the economy in every part of the country 'sounds great' but would be 'much harder to achieve in practice.' She suggested it might be more realistic to help large cities grow stronger first rather than trying to boost every area at once. Her comments highlight the challenge of turning big promises into real results.

Politicians from other parties were sharply critical of the plan. Shadow Chancellor Andrew Griffith said it would do little to help families worried about tax rises and high borrowing costs. Liberal Democrat deputy leader Daisy Cooper said £150 million spread across all of northern England would 'barely shift the dial on growth.' Robert Jenrick of Reform UK went even further, calling Healey 'an empty vessel with no idea about how to rescue our economy.' Griffith also criticised the government for not addressing defence spending, pointing to threats from Russia, Iran, and concerns over the Falkland Islands.