Chancellor John Healey is set to unveil a £150m fund for companies in the north of England, part of a grand plan to sprinkle economic growth across the UK like fairy dust. In a speech on Monday, he'll outline his proposal to use public investment to attract private capital, because nothing says 'innovation economy' like recycling old money.

The speech comes against a challenging backdrop, with the chancellor facing pressures ahead of his first Budget on 28 October, including concerns about a jump in government borrowing costs and the inflationary impact of the Iran war. Because what's a growth plan without a few geopolitical headaches?

In response to Healey's plan, the Conservatives said it would 'do little to comfort hard-working families and businesses' - which is rich, coming from the party that left the economy in this state.

Healey will announce a new £150m allocation from the British Business Bank, offering support to the 'most innovative and fast-growing firms'. The fund, from money already allocated to the bank, will provide investments of between £5m and £15m, and is expected to back university spin-outs and other 'ambitious businesses' across the north.

The chancellor is expected to say: 'The prime minister laid out a clear diagnosis of what has gone wrong in the past. The solution is a fundamental shift that starts with putting power in the right places. The next chapter of Britain's growth story will be written in more places.'

Helen Miller, director of the Institute for Fiscal Studies, poured cold water on the vision: 'Economic growth in every postcode sounds great and is something we would all love. I think it'll actually be much harder to achieve in practice.' She noted it's easier to see how the government could strengthen second and third cities than 'how it would drive growth in literally every postcode'.

During his first Prime Minister's Questions on Wednesday, Andy Burnham faced scrutiny over rising UK borrowing costs. Conservative leader Kemi Badenoch urged him to address the UK's increasing debt, after the cost of borrowing hit a new 18-year high. Burnham blamed the previous Tory administration, vowing his government would be 'grounded in fiscal responsibility' - a phrase that's becoming as reliable as the sunrise.

Shadow chancellor Andrew Griffith said Healey's plan would do 'little to comfort hard-working families and businesses across the country who are worried about more tax rises or the fact that government borrowing rates are near a 28-year high'. He added: 'We are facing serious threats from Russia and Iran on our doorstep, as well as threats to the Falkland Islands. Yet the chancellor, the man who resigned over defence spending, seemingly does not want to mention our armed forces or how we will reach 3% of GDP on defence.'

Liberal Democrat deputy leader Daisy Cooper said: 'Re-announcing £150m across the entire north of England will barely shift the dial on growth.' Robert Jenrick, Reform UK's economic spokesman, was less diplomatic: 'Days after a market meltdown, when grip and direction are required, John Healey has revealed himself to be an empty vessel with no idea about how to rescue our economy.'

UK long-term borrowing costs are the highest since 1998 ahead of the October Budget, and almost half of households do not see the benefits of economic growth, according to a report. But hey, at least the north gets a fund that's roughly the GDP of a small village.