Chancellor says UK economy 'turning a corner' despite debt concerns — SkimNews
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- Chancellor John Healey told the Manufacturing Technology Centre in Coventry the UK economy is "not just turning a corner" but "resilient, optimistic and ready to seize the opportunities of new technologies," unveiling a £150m fund from the British Business Bank to back university spin-outs and fast-growing firms in the north of England with investments of £5m–£15m each.
- Jaguar Land Rover announced 4,000 job cuts on the day of Healey's speech, citing competition from China, US tariffs on UK vehicles and the after-effects of a cyber attack.
- UK borrowing costs hit a new 18-year high, with the Treasury facing potential multi-billion pound gaps from rising borrowing costs and higher defence spending, while Healey conceded borrowing costs are "too high" ahead of his 28 October Budget.
- Institute for Fiscal Studies director Helen Miller questioned whether growth "in literally every postcode" is achievable, saying it would be easier to identify stronger second and third cities than to deliver national spread.
- Pimco senior adviser Rupert Harrison told the BBC the country is being treated as "guilty until proven innocent" by bond markets, blaming credibility lost since Liz Truss's mini-Budget and persistent above-target inflation.
- Shadow chancellor Andrew Griffith said the plan would "do little to comfort" families worried about tax rises and noted threats from Russia and Iran "on our doorstep," accusing Healey — "the man who resigned over defence spending" — of failing to address how the UK will reach 3% of GDP on defence.
- Healey acknowledged he is "as committed to balancing the books" as his predecessor Rachel Reeves, while steering clear of pre-Budget warnings on higher taxes or spending cuts.
- Prime Minister Andy Burnham, at his first Prime Minister's Questions on Wednesday, blamed the previous Tory administration for the rising debt and pledged a government "grounded in fiscal responsibility," per the source.
Why it matters: The optimism-versus-data gap is the story: Healey is selling a "turning a corner" narrative on the same day borrowing costs hit an 18-year high, JLR shed 4,000 jobs, and bond-market credibility is described as "guilty until proven innocent." With the Budget due 28 October and the Treasury already bracing for multi-billion pound gaps, the chancellor's refusal to preview tax rises or spending cuts leaves fiscal markets in the dark at precisely the moment investors want a credible fiscal anchor.
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