Northern Growth Fund
Chancellor John Healey launches £150 million fund to drive northern economic growth.
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Key Points
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The fund is intended to cover businesses in Liverpool, Manchester, Leeds, Sheffield and Newcastle, linking the investment to specific northern innovation hubs.
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Healey is expected to frame the policy as “supply side economics,” saying the money is meant to back innovative firms rather than represent sentimentality.
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The British Chambers of Commerce called for employer National Insurance to be abolished for under-25s to make hiring young people cheaper, suggesting the change could be funded by scrapping the pension triple lock.
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Mandala Partners estimated that replicating Greater Manchester’s growth since devolution could raise household incomes by £2,800 a year; it said £8.5 billion given to mayors could unlock 100,000 homes and support 70,000 jobs.
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The Conservatives’ Andrew Griffith criticized the announcement as a “policy-light word salad,” while Reform’s Robert Jenrick described it as “guff,” sharpening the opposition response beyond general claims that the plan was inadequate.
Chancellor John Healey is launching a £150 million fund to back fast-growing companies across northern England, including university spin-outs and early-stage tech firms Market Screener. The British Business Bank will make investments of £5 million to £15 million each, designed to attract additional private capital and create jobs in cities like Manchester, Leeds, Sheffield and Newcastle Market Screener.
Healey frames the initiative as "supply side economics"—betting that public money will unlock private investment and spread growth beyond London Market Screener. The move comes as the government faces pressure over borrowing costs and inflation, with an October Budget looming and opposition critics already calling the plan insufficient Market Screener.
How the Fund Works and Where It Goes
The £150 million fund targets five major northern cities: Liverpool, Manchester, Leeds, Sheffield and Newcastle Market Screener. Each investment sits between £5 million and £15 million, meant to back innovative firms rather than struggling ones. Healey wants the public cash to trigger far larger private investment, multiplying the fund's impact without straining the government budget Market Screener.
Opposition Attacks Plan as Too Small
Conservative politician Andrew Griffith dismissed the announcement as "policy-light word salad," while Reform's Robert Jenrick called it "guff"—sharp attacks that go beyond simply claiming inadequacy Bloomberg. An Institute for Fiscal Studies economist also questioned whether the government could truly deliver growth in every postcode across the country.
Critics point to the fund's modest size relative to regional challenges. However, analysis by Mandala Partners suggests that if the rest of the north matched Greater Manchester's growth since devolution, household incomes could rise by £2,800 a year—showing what's possible with sustained investment Market Screener.
Devolution and Private Capital as Growth Strategy
Healey argues that giving local leaders more power, combined with smart public investment, can unlock growth across regions. The government believes regional mayors and councils understand their economies better than distant Westminster officials Market Screener. Devolution has already shown early results: £8.5 billion given to mayors could unlock 100,000 homes and support 70,000 jobs, according to Mandala Partners.
Business Groups Push for Bolder Hiring Incentives
The British Chambers of Commerce called for employer National Insurance to be abolished for workers under 25, making it cheaper to hire young people Market Screener. They suggested funding the change by scrapping the pension triple lock—a proposal that would face strong opposition from retirees and pensioners. The chamber's push signals frustration that the £150 million fund, while welcome, doesn't go far enough to tackle youth unemployment or regional wage gaps Market Screener.
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