Chancellor unveils £150m fund to boost northern start-ups

Chancellor John Healey is set to announce a £150m fund dedicated to supporting start-ups in the North of England. The initiative forms part of the government’s broader strategy to utilise devolution as a driver of economic growth. The new funding will specifically target university spin-outs and other early-stage companies operating in Liverpool, Manchester, Leeds, Sheffield and Newcastle. Healey is expected to reveal the details of the scheme in a speech delivered at a major British manufacturing site. The money will be sourced from the existing budget of the British Business Bank, rather than representing new public expenditure.

The announcement is designed to provide economic support for Prime Minister Andy Burnham’s devolution agenda, which aims to deliver growth across all regions of the country. Treasury officials have stated that the Prime Minister believes he has identified the root causes of the UK’s economic challenges, citing neoliberalism, de-industrialisation and austerity as factors responsible for decades of low growth. The Chancellor is expected to argue that the fund will help unlock private investment by supporting city regions with the power to create local industrial strategies. Healey is anticipated to describe the approach as supply-side economics, intended to back the most innovative and fast-growing firms rather than being driven by sentimentality.

In his address, Healey will outline the government’s vision for what he terms good growth. He is expected to define this concept not merely as a statistical figure, but through tangible outcomes such as young people securing employment in expanding companies, sole traders winning contracts that improve their quality of life, and businesses securing export orders that revitalise local communities. The Chancellor will also explain how the newly formed No10 North will integrate into his economic plans. He is set to describe a dual mission with the Treasury to drive growth and productivity, while positioning the central government as a strategic enabler that removes bureaucratic blockages rather than imposing complexity.

The move comes as Healey prepares to deliver his first Budget as Chancellor next month. He faces increasing pressure from business leaders to address the cost of doing business, with calls for easing employment costs, reforming business rates and reducing energy bills for firms. The opposition has criticised the announcement, with the Conservatives describing the speech as a policy-light word salad. Shadow Chancellor Andrew Griffith argued that the measures would do little to comfort families and businesses concerned about potential tax rises and high government borrowing rates. Griffith also noted that the Chancellor has not addressed national security threats from Russia and Iran, or the commitment to reach three per cent of GDP on defence spending, despite his previous resignation over defence issues.