England’s mayors and local leaders are set to receive more money, more powers and greater capacity to deliver projects on the ground, under plans announced by the Government that aim to end the era of communities travelling to Whitehall, cap in hand, to secure funding for their own priorities.
The practical mechanics of the shift are set out in detail. An initial £285 million in transitional seed funding will be allocated by government next year to support mayors and local leaders across England, with the aim of ensuring good growth in every postcode. The Government will also confirm that it will work with mayors to design a new £1.5 billion borrowing facility from 2028, giving them access to the capital needed to back local priorities.
Alongside the funding, Strategic Authorities will receive £150 million next year to strengthen their capacity and capability as their responsibilities and powers grow. The Government says this cash will enable mayors to begin building the resource and expertise they need as they take on more powers, so they can manage larger budgets, deliver more complex investment programmes and make full use of the expanded devolved powers they are receiving.
The plans will be formalised at the Budget, where Chancellor John Healey will pledge to unlock growth across Britain by putting communities in control of their economic future, ending what the Government describes as the era of power and resources being hoarded in Whitehall. The Chancellor has confirmed plans to introduce Good Growth funding for local leaders across England, giving them the flexibility and authority to invest in what they deem the local priorities for growth without permission from Whitehall.
Mayor Claire Ward, Chair of UK Mayors, welcomed the announcement and framed it in terms of delivery on the ground. “I’ve always believed that decisions are best made by the people who understand their communities and the challenges they face,” she said. “But too often, local leaders have had to navigate a maze of funding pots, with tight restrictions on how money can be spent.”
She added that she has championed bringing more power and funding from Whitehall into the East Midlands so the region can focus on what matters most to the people who live and work there. “More flexible funding will help us to get on with the job, whether that’s building the homes people need, improving transport links between communities, or creating opportunities for people to get on in life,” she said. “I want to make the East Midlands the best place to live, work and learn. Having the right powers and resources through increased devolution will help me turn that ambition into reality, to deliver real and lasting change for our communities.”
The approach builds on work the Prime Minister oversaw during his time as Mayor of Greater Manchester, where a similar pioneering fund, crowding in private investment through public investment, is already backing housing, employment space and major infrastructure by giving local leaders the flexibility to invest in the projects that can make the biggest difference to their area.
Prime Minister Andy Burnham said he was calling time on local leaders going cap in hand to Westminster. “That is no way to run a country,” he said. “When I became Prime Minister, I said that if a decision can be made closer to home, it should be. Today, we’re putting that into practice, shifting power into the hands of the people who know their communities best.”
Chancellor Healey argued that local people have the right to decide their own future. “Every community in Britain has potential, for too many it has gone untapped and wasted while money and power has been held in Westminster,” he said. “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.”
Secretary of State for Housing, Communities and Local Government Angela Rayner said the Government is putting a stop to mayors and local leaders being forced to come to Westminster asking for power and funding that should rightfully be theirs. “We’re backing our leaders to deliver what their communities need, from much-needed housing developments, stronger and better transport links, and the regeneration of the places people care so much about,” she said. “That is what our devolution revolution really means, real decisions made locally, backed by real money, so every town and city can shape its own future.”
The Government says the plans reflect the Treasury, MHCLG and No10 North working hand in hand with mayors and local leaders to rewire the state and deliver growth in every postcode in Britain. Further detail is published at https://www.eastmidlands-cca.gov.uk/news/mayor-welcomes-government-plans-to-grant-regional-leaders-more-money-powers-and-capacity/