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Britain’s growth must extend beyond London and other large UK cities, the Chancellor has warned as he prepares to outline his economic agenda.
John Healey is preparing to lay out plans aimed at driving long-term development across the country in a major speech on Monday, ahead of his first Budget on October 28.
He is pressing ahead with major reforms to the Treasury “rule book” to drive investment out of the capital to the regions and is changing the discount rate on which the value of transport, housing and social infrastructure projects is assessed.
Writing in Sunday People, Mr Healey said his plan would seek to deliver progress by supporting local government and town centres.
“But not growth for its own sake – not a number on a spreadsheet. And not reserved for our biggest cities. This is about growth in every postcode,” he wrote.
“Factories across Britain taking on young people. Small business owners finally being able to expand. Town centres and high streets seeing new life.”
Mr Healey added: “Britain already has the strengths it needs to succeed – global financial centres, cutting-edge science and technology, world-class universities, and communities full of ambition. So the question is: What’s stopping us?
“Tomorrow I’ll set out my plan to deliver good growth in every postcode by making the most of Britain’s strengths.
“We’re putting mayors, local government, entrepreneurs and investors at the heart of this plan.”
The comments came a day after Mr Healey also told the Financial Times he would ensure Britain emerges from his first Budget with a solid “buffer against uncertainty”.
He warned this could be tough, as US President Donald Trump’s war in the Middle East affects the UK economy.
Economists have predicted that the fiscal buffer Rachel Reeves built up in her last budget, through a combination of tax rises and departmental spending cuts, will be squeezed by the inflationary pressures of ongoing global turmoil.