The Chancellor will today insist the economy is “turning a corner” as he unveils his plan to push growth to Britain’s regions, amid warnings he will have to raise taxes to balance the books.
John Healey will promise discipline with the public finances, while arguing the Government’s plan for greater public control will help boost investment and growth in “every postcode”, as he seeks to reassure business and jittery financial markets.
But economists warned that while Andy Burnham’s plan to send powers and cash around the country may boost economic growth in the long-term, the Chancellor is likely to have to raise taxes in next month’s Budget to maintain credibility with the markets.
Shorts
Healey’s speech on Monday is designed to set the stage for the Budget – a key moment for Burnham’s nascent Government – on 28 October.
