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John Healey, the new Chancellor, is preparing to give an upbeat view of the UK economy in a speech on Monday, just before next month's Budget. In his speech, he will announce a £150m fund for companies in the north of England, which will provide investments of between £5m and £15m to innovative firms. This is part of a wider plan to generate more economic growth around the UK through an "active state" that works with private businesses. However, Healey's plans come amid concerns about government borrowing costs and inflationary impacts of the Iran war.
This news matters because it sets out the Chancellor's vision for the economy and his plans to stimulate growth in certain regions of England. The £150m fund is a key part of this plan, aiming to attract private investment and support innovation across the UK.
Written for “UK Economic Recovery” on 2026-09-07,
grounded in this article and the 2 other(s) covering the same event.
The Chancellor will unveil a £150 million fund for fast-growing northern firms as he sets out plans to grow the economy through an “active” state.
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he → unveil → state
But it comes against a challenging economic backdrop ahead of Mr Healey’s first Budget on October 28, with a leap in Government borrowing costs amid concerns about the inflationary impact of the Iran war threatening his fiscal headroom.
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impact → come → headroom
Mr Healey will detail plans to spread growth more widely across the UK by using public investment to attract private capital.
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Healey → detail → capital
“This is not sentimentality, it’s supply side economics.”
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it → ’ → ?
The pot, using money already allocated to the Government-owned bank, will offer investments of between £5 million and £15 million to help university spin-outs and other innovative companies across the North of England expand.
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outs → use → England
The Treasury hopes the fund will draw in additional private cash, as part of Mr Healey’s vision of an “active state” working with private businesses to create opportunity.
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fund → hop → opportunity
Mr Healey will also task the British Business Bank and National Wealth Fund with doing more to support investment and innovation across the UK.
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Healey → task → UK
As part of this, the National Wealth Fund has agreed strategic partnerships with mayoral authorities in South Yorkshire, Liverpool City Region and the North East, as well as Cardiff Capital Region.
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Fund → agree → Yorkshire
This will give local leaders direct access to the fund’s investment expertise to help develop infrastructure projects, the Treasury said.
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Treasury → give → projects
Speaking at a manufacturing site, the Chancellor is expected to say: “The Prime Minister laid out a clear diagnosis of what has gone wrong in the past.
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what → speak → past
The solution is a fundamental shift that starts with putting power in the right places.
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that → start → places
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“The next chapter of Britain’s growth story will be written in more places.”
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chapter → read → places
He will say that No 10 North was set up as “a strong, strategic centre wired to enable local leaders and their ambitions” by “removing obstacles” and red tape.
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North → say → obstacles
“I want to see wealth creation in this country.
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I → want → country
I want to see businesses make a profit,” the Chancellor will say.
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Chancellor → want → profit
“And to create the conditions for that we need an active, accountable state at all levels to remove blockages and create the conditions for more investment.”
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we → create → investment
On the partnership between Government, local leaders and businesses, he will say: “This is new.
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This → say → Government
City regions with real power, supported by a stronger state, creating local industrial strategies and using public investment to unlock private investment, to support our innovation economy, and to create the new jobs their areas need.”
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areas → support → jobs
Mr Healey will say that boosting growth must go hand-in-hand with maintaining fiscal discipline, particularly at a time of global uncertainty.
And he will say that growth will help Britain navigate that turmoil with “an optimistic story – one of resilience, pride, huge latent potential”.
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growth → say → resilience
A country whose people, businesses and communities are ready to seize the opportunity of new technologies and new ideas.”
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people → seize → technologies
The Tories described the trail of Mr Healey’s speech as a “policy-light word salad”.
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Tories → describe → salad
Shadow chancellor Andrew Griffith said: “It will do little to comfort hard-working families and businesses across the country who are worried about more tax rises or the fact that government borrowing rates are near a 28-year high.
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rates → say → high
“Commitments to reduce red tape are welcome but given this Government’s track record with its Employment Rights Act and other anti-business measures, people will rightly question their sincerity.
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people → reduce → sincerity
“We are facing serious threats from Russia and Iran on our doorstep, as well as threats to the Falkland Islands.
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We → face → Islands
Yet the Chancellor, the man who resigned over defence spending, seemingly does not want to mention our Armed Forces or how we will reach 3% of GDP on defence.”
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we → resign → defence
Liberal Democrat deputy leader Daisy Cooper accused the Chancellor of undermining his growth ambitions by “ignoring the Brexit trade barriers choking our exporters” .
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Cooper → accuse → exporters
She continued: “Re-announcing £150 million across the entire North of England will barely shift the dial on growth.
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announcing → continue → growth
Liberal Democrats are demanding that Labour move faster to strike a Growth and Defence Deal that will make the UK stronger and more prosperous.”
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UK → demand → Deal
Reform UK’s economic spokesman Robert Jenrick said: “Even Rachel Reeves had more vision than this guff.
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Reeves → reform → guff
Days after a market meltdown, when grip and direction are required, John Healey has revealed himself to be an empty vessel with no idea about how to rescue our economy.
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himself → require → economy
“He won’t cut the ballooning benefits bill, foreign aid, or net zero subsidies so taxes on working people will inevitably rise at the Budget.”
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taxes → cut → Budget
