Mayors welcome cash boost ahead of Budget
Regional authorities will be able to access a £1.5bn lending facility to kick-start local projects from 2028, the government will announce this week.
Chancellor John Healey will deliver his first Budget on Wednesday, when he is also expected to confirm £285m in “seed funding” announced earlier this year, which local mayors can allocate towards housing development, transport infrastructure, or High Street regeneration schemes.
Prime Minister, Andy Burnham, said the changes would “end the days of local leaders going cap in hand to Westminster”, while chancellor John Healey said extra funding for devolved authorities would “unlock growth, create opportunity and restore hope for the future.”
The government will also provide a further £150m to strengthen their capacity and capability at regional mayoral authorities, intended to help them manage more complex investment programmes and carry out expanded roles under central government devolution plans.
East Midlands mayor, Claire Ward – who is also chair of the UK Mayors Network – welcomed the government’s commitments, but said she would continue to push for extra funding for the region.
“I’ve always believed that decisions are best made by the people who understand their communities and the challenges they face. But too often, local leaders have had to navigate a maze of funding pots, with tight restrictions on how money can be spent,” she said.
“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.”
In the West Midlands, Richard Parker said the funding would add “greater flexibility” to regional spending plans.
“Last year saw us smash government targets on housing, jobs and business support, proving what can be done when decisions are made by people with skin in the game, who know their region best,” he said.
“But the changes announced today also reflect the government’s trust in us to get things done and in our deep understanding of what our communities need to thrive. We will now waste no time in delivering more of those things and at a faster pace.”
Ahead of Healey’s first Budget since becoming chancellor, the IMF upgraded its forecast upwards for the UK economy earlier this month, predicting GDP growth of 1.3% for the UK this year, up 0.3 percentage points from its most recent update in July.
Former mayor of Greater Manchester Burnham made devolution a key part of his policy platform after becoming Prime Minister in July, promising to “rewire the state” in a bid to replicate the economic success of his former administration.
His successor as mayor, Bev Craig, said the government’s devolved Good Growth Fund would unlock investment, deliver new homes and “transform places” across the city region.
“We have pioneered this new economic model right here in Greater Manchester,” she said.
“We’ve approved more than £1bn of investment in its first year alone, funding projects across every single borough in Greater Manchester. This has included supporting the delivery of 5,600 new homes, the transformation of Oldham and Wythenshawe’s town centres and providing over 2.3 million sq ft of employment and innovation space like QIAGEN’s new campus.
“But it’s about more than just bricks and mortar. Through its social value contract, every project ensures the benefits of growth are felt by people in their pockets, on their high streets and when they go out to work.”
Steve Rotheram, mayor of Liverpool, said the city’s best days are ahead, adding hopes that funding announced in this week’s Budget would help to “build on the foundations” of the city region.
“We’ve shown in the Liverpool City Region what can be achieved when we’re trusted to make our own decisions, and I’m pleased we’ve got a government that’s willing to push us to go further with that ambition with real investment, new powers and greater freedom to deliver,” he said.
Chancellor of the Exchequer, John Healey, will deliver the Budget on Wednesday, 28 October.
