25th Oct 2026 10:39
(Alliance News) - Mayors and regional leaders in England will be given extra funding and greater control in the Budget as ministers hope to boost economic growth across the country.
Chancellor John Healey said the plan would make the most of "untapped and wasted" potential in English cities and regions.
Prime Minister Andy Burnham, who has long called for greater devolution from Whitehall, said the move would stop local leaders having to go "cap in hand" to Westminster for investment.
The plans, which will be formally announced in Wednesday's Budget, will give them more flexibility and authority to make investment decisions.
The government has allocated an initial GBP285 million next year, with the move intended to shift away from reliance on different bidding pots managed from Whitehall.
In an effort to address criticism from areas which do not yet have strategic authority status, the Treasury said they will still be able to access a share of the money to support them in the "transitional period".
The government will also work with mayors to design a new GBP1.5 billion borrowing facility from 2028, giving them greater access to capital to invest in projects.
The chancellor said: "Every community in Britain has potential – for too many it has gone untapped and wasted while money and power has been held in Westminster.
"Mayors and local leaders know what their communities need to grow, which is why we are giving them more money, more power and more capacity to get projects moving, build homes and make the right decisions for their areas."
Strategic authorities will also get GBP150 million of funding next year to build their capability to take on the new powers and manage complex projects and investment programmes.
The prime minister said: "I'm calling time on local leaders going cap in hand to Westminster. That is no way to run a country.
"When I became prime minister, I said that if a decision can be made closer to home, it should be."
Claire Ward, chair of the UK Mayors Network and Labour's East Midlands mayor said: "Having the right powers and resources through increased devolution will help us to turn our ambitious plans into reality and deliver real, lasting change for our communities.
"I welcome this commitment from government and will continue to push for the tools we need to help our regions to thrive."
Labour's London Mayor Lord Sadiq Khan said the greater ability to invest could "help unlock transformational infrastructure projects" including the West London Orbital route, the extension of the Bakerloo underground line and Docklands Light Railway and the development of Stratford International station.
By David Hughes, Press Association Political Editor
source: PA
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