UK Chancellor John Healey is preparing to announce a plan to decentralize power from the central government to cities and regions, hoping to increase local authority's power to develop industrial plans and attract private investment. He emphasized the commitment to achieving growth while maintaining fiscal discipline.
On September 7, 2569, Reuters reported that British Chancellor of the Exchequer John Healey was preparing to deliver his first major speech since taking office to announce a plan to stimulate economic growth by decentralizing power from the central government to the various regions of the country.
Healey stated that empowering cities and regions more would allow them to develop appropriate local industrial development plans and enhance their ability to attract private investment, as part of Prime Minister Andy Burnham's strategy to decentralize and foster economic growth across the country.
The UK Chancellor of the Exchequer will emphasize the importance of a “proactive and responsible state” role in promoting investment, while affirming that the government remains committed to fiscal discipline despite increasing economic and fiscal pressures.
One of the key measures is the allocation of £150 million from the British Business Bank to support innovative companies in northern England. Each company will receive an investment of approximately £5-15 million to help them expand and promote investment in the region.
Healey and Burnham have pledged to continue adhering to government fiscal rules, with the goal of balancing recurring government spending with tax revenue by the end of this decade.
However, the British government is facing significant fiscal pressure ahead of the budget announcement on October 28. Rising financing costs, coupled with inflationary pressures stemming from the US-Iran conflict, leave the government with limited room for fiscal policy maneuvering.
Meanwhile, plans to increase spending on social welfare and defense may require the government to generate additional tax revenue in the future.
Healey's approach, therefore, aims to strike a balance between stimulating the regional economy, encouraging private investment, and maintaining the fiscal credibility of the British government.
Reference: www.reuters.com
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