UK Chancellor Promises Growth Budget, But Neoliberal Debt Policies Persist
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Chancellor John Healey will unveil a £150 million fund for northern firms and a plan to boost growth, yet faces criticism for prioritizing market-driven solutions amid rising borrowing costs and inflation.
Chancellor John Healey is set to deliver a speech on Monday ahead of his first budget, framing it as a new chapter in the UK’s economic story—one that claims to embrace resilience and new technologies. However, the announcement of a £150 million fund, sourced from the British Business Bank, continues the trend of funnelling public resources into private hands. The fund, aimed at so-called 'innovative and fast-growing' firms in the north of England, will offer investments of £5 million to £15 million each, including to university spin-outs, but does little to address the structural inequalities that plague these regions.
Healey will argue that public investment can unlock private capital, foster an innovation-driven economy, and create jobs. Yet, this rhetoric masks a continued reliance on private sector interests and profit motives, rather than prioritizing public welfare or democratic control over economic development. The focus on 'regional growth' risks becoming another slogan unless it is matched with real redistribution and empowerment of working people.
This announcement comes as the Treasury faces mounting borrowing costs, increased defence spending, and inflationary pressures exacerbated by the ongoing conflict in Iran. Critics, including Conservative leader Kemi Badenoch and shadow chancellor Andrew Griffith, have attacked the plan for failing to reassure families about tax rises and soaring borrowing rates. However, their critiques ignore the deeper failures of austerity and market orthodoxy that both major parties have embraced.
Helen Miller, director of the Institute for Fiscal Studies, warned that while growth in every postcode sounds appealing, it will be difficult to achieve and is likely only realistic in secondary and tertiary cities. This highlights the limitations of Healey’s approach, which stops short of transformative investment in public services and infrastructure.
Healey reiterated his commitment to fiscal balance, echoing the neoliberal dogma of his predecessors, as the government seeks to project an optimistic outlook ahead of the budget scheduled for 28 October. Without a break from failed economic orthodoxies, the promise of shared growth will remain out of reach for most.