Overview
- Healey set out a devolution-led growth plan on Monday that would give city regions new powers to design local industrial strategies and use public investment to attract private capital.
- He earmarked £150 million from the British Business Bank for innovative firms in the north of England to provide smaller equity stakes meant to draw in further private funding.
- The chancellor announced reforms to the Treasury “rule book,” including a change to the discount rate used to appraise transport, housing and social infrastructure projects to make regional schemes more attractive.
- Healey warned that the war in the Middle East has pushed up inflation and gilt yields, which has narrowed his fiscal headroom and increased pressure to find around £10–15 billion at the Budget to restore a credible buffer.
- Economists say tax rises are now more likely to rebuild market confidence, while Conservatives including Rishi Sunak urge spending cuts instead; the Office for Budget Responsibility scoring at the October 28 Budget will be decisive for markets and households.