UK Finance Minister Healey Unveils Decentralisation Drive to Boost Economic Growth

LONDON — UK Finance Minister John Healey is set to outline plans to boost economic growth by transferring greater powers to regions and city authorities, as the government seeks to attract investment and strengthen economic activity across the country.

In his first major speech since taking office, Healey is expected to argue that giving local leaders greater control over economic policy will enable regions to develop industrial strategies tailored to their individual strengths and attract more private-sector investment.

Healey will emphasize the government’s intention to pursue an active role in supporting wealth creation while maintaining fiscal discipline. His approach forms part of Prime Minister Andy Burnham’s broader agenda to decentralize decision-making and move economic power away from Westminster.

As part of the initiative, £150 million ($203 million) in funding from the British Business Bank will be directed toward innovative companies in northern England. Individual investments of between £5 million and £15 million are intended to help attract additional private capital and support the expansion of promising businesses.

The announcement comes ahead of Healey’s first Budget, scheduled for October 28, at a time when the government faces mounting economic challenges. Investors are closely monitoring inflation, borrowing costs and the impact of higher energy prices linked to the conflict in Iran, while ministers are also under pressure to meet increased spending demands.

Healey is expected to reaffirm the government’s commitment to its existing fiscal rules, despite competing demands for greater spending on areas including defence and social care.

The government hopes that greater regional decision-making, combined with targeted investment and support for innovative businesses, will help address long-standing disparities in economic performance and stimulate growth across the United Kingdom.

Healey’s strategy comes as the government seeks to demonstrate that economic growth can be achieved while maintaining control of public finances, with regional investment and devolution emerging as central elements of its economic agenda.