Chancellor announces £150m fund for northern businesses amid budget pressures
UK Chancellor John Healey unveiled a £150 million growth fund for businesses in the North and outlined plans to give local leaders more authority, while facing upcoming budget decisions on defence spending and taxes.
The UK chancellor said a new £150 million fund will be established to support business growth and job creation in the North of England. He indicated that the measure is part of a broader effort to boost regional economies and give local authorities greater decision-making powers. He added that the government hopes the initiative will help offset inflation pressures linked to higher oil and gas prices.
"A new story about Britain. An optimistic story. One of resilience, pride and huge latent potential," the chancellor said, describing the country's outlook. Labour shadow chancellor Andrew Griffith criticised the proposal, calling it insufficient to address concerns about potential tax increases. Former minister Robert Jenrick also expressed skepticism about the plan's vision. The British Chambers of Commerce suggested cutting Employer National Insurance for workers under 25 to reduce hiring costs, proposing that the savings could be funded by ending the triple lock on state pensions. A consultancy cited Greater Manchester’s post-devolution growth as a model, estimating that a similar approach could raise household incomes by about £2,800 annually. Another analysis projected that allocating £8.5 billion to mayoral projects might unlock 100,000 homes and support 70,000 jobs.