LONDON, Sept 7 (Reuters) – In his first major speech since taking office seven weeks ago, Britain's finance minister, John Healey, will explain how Prime Minister Andy Burnham's plan to decentralise power can help revive growth across the country.
He is expected to announce, during a speech at a manufacturing site on Monday, plans to give city regions more power to develop local industrial strategies and attract private investment, part of a push to bring growth to "every postcode".
"I want to see wealth creation in this country. I want to see businesses make a profit. And to create the conditions for that we need an active, accountable state at all levels to remove blockages and create the conditions for more investment," Healey is expected to say, according to a release from his office.
He will also stress his commitment to "fiscal discipline" while pursuing faster growth in Britain's sluggish economy.
Challenges have been mounting for Healey ahead of his first budget on October 28. Investors worry about the inflationary impact of rising oil prices from the Iran war, shrinking budget headroom, and rising spending commitments.
Healey will announce that £150 million ($203 million) of funding already allocated from the British Business Bank will be earmarked for innovative firms in the north of England, with investments of between £5 million and £15 million designed to attract additional private capital.
Both Healey and Burnham have pledged to keep the fiscal rules adopted by the previous government, including balancing day-to-day spending with tax revenues by the end of the decade.
But with Burnham's plans for expanded social care and more defence spending, Healey is under pressure to raise billions of pounds in tax at the budget.
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