John Healey praises UK business and vows to support more ‘unicorns’ as he says economy is turning a corner

Chancellor promised to address the rising burden on businesses ahead of next month’s Budget

Chancellor John Healey said the UK economy was “turning a corner” as he pledged to rein in public expenditure ahead of next month’s Budget.

Delivering his first major address since taking charge at the Treasury, Mr Healey acknowledged the strain of high government borrowing costs and vowed to ease the growing pressure on businesses.

Mr Healey sought to strike an upbeat tone about the UK’s economic outlook, despite the ongoing turbulence caused by global crises including the conflict in the Middle East and Russia’s invasion of Ukraine.

Speaking in Coventry ahead of next month’s Budget — the first since Andy Burnham moved into 10 Downing Street — Mr Healey said: “The Prime Minister and I are in lockstep in our commitment to meeting the fiscal rules at the upcoming Budget, to balancing the books with a buffer to protect against uncertainty.

“To controlling borrowing to bear down on inflation and reducing long-term pressures on our public finances.”

He argued that the mounting cost of debt interest demonstrated that “staying true to our values means being honest about the need to control government spending”.

Yet he maintained there remained an “optimistic story” to be told about the UK economy, which he said possessed “huge latent potential”.

It was, he said, “a country turning a corner, a country whose people, businesses and communities are ready to seize the opportunity of new technologies and new ideas”. Outlining his vision for the economy, Mr Healey confirmed the Government would extend its overhaul of judicial review from energy projects to encompass all major infrastructure schemes.

He stated the reforms would ensure “vexatious litigation and challenge can’t block economic growth”.

The Chancellor also reaffirmed the Government’s pledge to devolve power away from Whitehall, announcing he would unveil a “roadmap to fiscal devolution” at next month’s Budget.

He said: “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.”

In advance of that, he revealed the British Business Bank would be injecting £150 million into high-growth firms across the North of England, while also announcing the establishment of a “Northern 500” collective of “the North’s most ambitious mid-sized businesses”, to be led by regional mayors.

Mr Healey said he wanted twice as many “unicorn” firms in the UK and to make it easier for businesses to test new technology.

Mr Healey said: “So, I’m setting an ambition now to double the number of unicorn firms in this country.”

He said he would also aim to have “sandboxing” powers in place so businesses and innovators can test technology from pavement robots to drones to life-saving medical equipment, which he said regulation currently prevents.