UK Finance Minister Pushes Regional Power Shift to Boost Economic Growth

Britain’s finance minister John Healey will use his first major speech since taking office to outline how Prime Minister Andy Burnham’s plan to shift power away from central government could help revive the country’s economy. Speaking at a manufacturing site, Healey is expected to announce that city regions will gain greater authority to shape local industrial strategies and attract private investment, part of a broader effort to spread growth across the country.

Focus on Investment and Fiscal Discipline

Healey plans to emphasize the need for an active, accountable government at every level to remove obstacles to business investment and profit, while also stressing his commitment to fiscal discipline as he works to accelerate growth in Britain’s sluggish economy. Among the announcements, £150 million already allocated through the British Business Bank will be directed toward innovative firms in the north of England, with individual grants ranging between £5 million and £15 million designed to draw in additional private capital.

Pressure Builds Ahead of October Budget

Healey faces mounting challenges heading into his first budget at the end of October, as investors express concern over inflation driven by rising oil prices linked to the conflict involving Iran, shrinking fiscal headroom, and growing spending commitments. Despite this, Healey and Burnham have pledged to maintain the fiscal rules set by the previous government, including a goal of balancing day-to-day spending with tax revenue by the end of the decade. With plans for expanded social care and higher defence spending already in motion, Healey is under increasing pressure to raise significant tax revenue in the upcoming budget.