London – In a speech delivered at a manufacturing site on Monday, UK Finance Minister John Healey outlined a bold push to decentralise economic decision‑making. The announcement, his first major address since taking office seven weeks ago, promises new powers for city regions to craft local industrial strategies and draw private investment.
Decentralising power to spur local wealth
Healey said the government’s goal is “wealth creation in this country” and stressed that “businesses need to make a profit.” He argued that an “active, accountable state at all levels” is essential to remove blockages and create conditions for more investment.
Under the proposed framework, city regions will receive authority to develop tailored industrial plans, coordinate infrastructure projects, and streamline permitting processes. The aim is to bring growth to “every postcode,” ensuring that prosperity is not confined to London and the South East.
Funding for innovative firms in the North
As part of the rollout, Healey announced that £150 million already allocated from the British Business Bank will be earmarked for innovative firms in the north of England. The funding will be distributed in grants ranging from £5 million to £15 million, intended to attract additional private capital and accelerate the development of high‑growth sectors.
Fiscal discipline remains a priority
Healey also reaffirmed the government’s commitment to fiscal discipline, pledging to adhere to the fiscal rules set by the previous administration. This includes a target to balance day‑to‑day spending with tax revenues by the end of the decade.
However, the finance minister faces pressure as Prime Minister Andy Burnham’s agenda includes expanded social‑care spending and increased defence outlays. Critics warn that the budget may need to raise billions of pounds in taxes to fund these priorities while maintaining the fiscal balance.
Challenges ahead
Investors remain cautious amid rising oil prices linked to the Iran conflict, shrinking budget headroom, and growing spending commitments. Healey’s upcoming budget on October 28 will be closely watched for how it balances these pressures with the new decentralisation agenda.
Overall, the move to empower city regions reflects a broader strategy to unleash local entrepreneurship, reduce central bottlenecks, and foster a more resilient, growth‑oriented British economy.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
