Chancellor John Healey unveils raft of measures set to boost Sheffield
“London, of course, is our powerhouse, but if our city regions could emulate the success of those in France or Germany, growth in our country would be transformed”
Chancellor John Healey announced a range of measures set to benefit South Yorkshire in his first major speech since taking over at the Treasury.
Mr Healey said he would set out plans for “a permanent transfer of power and resources” away from Whitehall, with greater business rates retention for councils and grants from central government replaced by a share of local income tax for every mayoral strategic authority from 2028.
He also announced £150 million from the British Business Bank for fast-growing firms in the north of England.
The Chancellor, who is MP for Rawmarsh and Conisbrough in Rotherham, said: “The next chapter of Britain’s growth story will be written in more places.
“That’s not sentimentality, that is supply-side economics. A transport bottleneck in South Yorkshire is too often invisible from Whitehall, but it can have a real impact on economic growth and on business investment decisions.
“That’s why, at the Budget, I will set out a roadmap to fiscal devolution, a permanent transfer of power and resources from Whitehall to our regions, with greater business rates retention for local councils and strategic authorities and grants from central government replaced by a share of local income tax for every mayoral strategic authority beginning in 2028.
“London, of course, is our powerhouse, but if our city regions could emulate the success of those in France or Germany, growth in our country would be transformed.”
Mr Healey said he would also task the British Business Bank and National Wealth Fund with doing more to support investment across the UK.
As part of this, the fund has agreed a partnership with South Yorkshire Mayoral Combined Authority that will give it direct access to the fund’s investment expertise.
Mr Healey also promised to “draw a line” under rising costs for businesses, end legal blockages to building infrastructure and embrace technology as part of a push for growth.
But he refused to rule out tax rises in next month’s Budget.
Speaking in Coventry, the Chancellor acknowledged the impact of high Government borrowing costs and promised to address the rising burden on businesses.
He said: “I dedicate myself to this mission as Chancellor to make Great Britain Growth Britain again with more investment, more innovation, and more jobs.”
Economists have warned that Mr Healey may need to raise taxes or cut departmental spending to protect the fiscal buffer built up by his predecessor Rachel Reeves at her last budget.
The Tories described the trail of Mr Healey’s speech as a “policy-light word salad.”