Chancellor John Healey has called for a renewed sense of national confidence, framing the UK economy as one that is “turning the corner” despite significant fiscal headwinds. Speaking at the Manufacturing Technology Centre in Coventry, Healey outlined a strategy centered on regional devolution, increased investment, and innovation to ensure “good growth in every postcode.”
The Chancellor’s remarks come as the government faces pressure from rising borrowing costs, which recently reached an 18-year high. While Healey acknowledged that “times are tough,” citing recent job loss announcements at Jaguar Land Rover, he maintained that the government remains committed to fiscal discipline. He emphasized that he and Prime Minister Andy Burnham are working to “balance the books” and control public spending to provide a buffer against economic uncertainty.
With the first Budget scheduled for October 28, the Chancellor declined to rule out potential tax increases, though he reiterated the government's manifesto commitment to avoid raising taxes on working people. He stated that his primary mission is to foster growth while remaining honest about the necessity of managing government expenditure.
As part of his growth strategy, Healey announced a £150 million fund aimed at supporting innovative, fast-growing firms in the north of England. The initiative, which utilizes existing allocations from the British Business Bank, seeks to leverage public investment to stimulate private sector activity.
The government’s approach has drawn criticism from opposition figures. Conservative Shadow Chancellor Andrew Griffith accused Healey of failing to provide clarity on tax policy, while Liberal Democrat deputy leader Daisy Cooper suggested the new investment fund would have a limited impact on overall growth. Meanwhile, analysts from the Institute for Fiscal Studies noted that while the goal of regional growth is ambitious, achieving it in practice will be difficult.
Source: BBC News
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