UK chancellor to present growth-focused budget amid debt concerns

Chancellor John Healey is set to deliver a speech on Monday ahead of his first budget, emphasizing a shift in the UK’s economic narrative toward resilience and the adoption of new technologies. He will announce a £150 million fund, drawn from the British Business Bank, aimed at supporting innovative and fast-growing firms in the north of England with investments of £5 million to £15 million each, including university spin-outs.

Healey will argue that public investment can unlock private capital, foster an innovation-driven economy and create jobs across the country. He is expected to say that the next phase of Britain’s growth will be written in more places, reflecting a broader regional focus.

The announcement comes as the Treasury confronts higher borrowing costs, a rise in defence spending and inflationary pressures linked to the conflict in Iran. Critics, including Conservative leader Kemi Badenoch and shadow chancellor Andrew Griffith, warned that the plan does little to reassure families concerned about tax rises and near-record borrowing rates.

Helen Miller, director of the Institute for Fiscal Studies, cautioned that while growth in every postcode sounds appealing, achieving it will be challenging and may be more realistic in secondary and tertiary cities.

Healey reiterated his commitment to fiscal balance, echoing his predecessor’s stance, as the government seeks to project a more optimistic outlook ahead of the budget scheduled for 28 October.