Chancellor to unveil growth plan with £150m fund for northern firms

Chancellor John Healey is set to unveil a £150m fund for companies in the north of England as part of a wider plan to generate more economic growth around the UK.

In a speech on Monday, he is expected to outline his proposal to boost development by using public investment to attract private capital.

The speech comes against a challenging backdrop as the chancellor faces pressures ahead of his first Budget on 28 October, including concerns about a jump in government borrowing costs and the inflationary impact of the Iran war.

In response to Healey's plan, the Conservatives said that what was being proposed would "do little to comfort hard-working families and businesses".

Healey is set to announce a new £150m allocation from the British Business Bank which would offer support to the "most innovative and fast-growing firms".

He will detail plans to use public investment to "unlock private investment, to support our innovation economy, and to create the new jobs their areas need".

The fund, from money already allocated to the British Business Bank, will provide investments of between £5m and £15m.

It is expected to back university spin-outs and other "ambitious businesses" across the north.