Chancellor John Healey is set to announce a £150 million investment programme for northern England, as the new Labour government seeks to shift more economic growth and investment away from London.

Healey’s first major economic policy speech will focus on using state-backed financial institutions, including the British Business Bank and National Wealth Fund, to support private-sector investment, business expansion and regional growth.

The new funding is expected to target northern startups and high-growth businesses, with the government aiming to improve access to finance for companies looking to expand. The move forms part of a wider strategy to encourage innovation and create stronger regional economies.

Healey is also expected to argue that Britain can strengthen its economic prospects by giving regions greater control over investment and reducing unnecessary government bureaucracy. However, opposition parties have criticised the plans, arguing that they do not go far enough to address high borrowing costs and the wider pressures facing households and businesses.

The announcement comes ahead of the government's 28 October Budget, putting further attention on how Labour plans to balance economic investment with fiscal discipline.