Chancellor John Healey will today outline his plans for spreading wealth creation across Britain as Jaguar Lane Rover confirms it will be cutting 4,000 jobs to offset shrinking sales.
His plans include removing obstacles that will enable more and faster decisions across the entire business spectrum.
It will be Mr Healey’s first set-piece announcement and will have added sensitivity as it will be delivered at a major manufacturer in the Midlands where JLR is based.
Business Secretary Jonathan Reynolds has ruled against a taxpayer bailout but has spoken to PB Balaji, JLR’s chief executive, ahead of talks on Tuesday with the company’s leadership team and Sharon Graham, head of the Unite union.
Mr Healey’s message will be one of devolving decision making on growth to the regions in line with Andy Burnham’s call for a decentralised state.
While the Chancellor will announce a £150 million fund for the north of England via the British Business Bank, there will be no announcements directly relevant to Scotland.
Mr Burnham is expected to outline a plan for northeast Scotland during an expected visit at the end of the week which will culminate in confirmation of the Jackdaw gas field off the coast of Aberdeen being approved by Energy Secretary Miatta Fahnbulleh on 15 September.
The Chancellor will set out plans to speed up growth with help for businesses of all sizes.
“Instead of getting in the way with complexity and red tape, we need a strong, strategic centre wired to enable local leaders and their ambitions,” he says.
“That’s why we created No10 North, working on a dual mission with the Treasury, removing obstacles so that local leaders and businesses can pull together to drive growth and productivity.”
The new fund, from money already allocated to the British Business Bank, will provide larger investments of between £5m and £15m and is expected to back university spinouts and other ambitious businesses across the North, from Liverpool and Manchester to Leeds, Sheffield, Hull and Newcastle.
The British Business Bank will commit up to £150m, with the proposed fund intended to attract additional private investment.
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