England's mayors and regional leaders are set to receive more money and more powers to help transform communities, with the plans to be formally announced in Wednesday's Budget.
The move will give local officials more flexibility and authority to make investment decisions. Prime Minister Andy Burnham, a former Greater Manchester Mayor, said it would stop local leaders having to go "cap in hand" to Westminster for investment.
Funding Allocations Announced
The Government has allocated an initial £285 million next year, with the move intended to end the reliance on different bidding pots managed from Whitehall. Areas without strategic authority status will not be left behind, with the Treasury saying they can access a share of the money to support them in the "transitional period".
The Government will also work with mayors to design a new £1.5 billion borrowing facility from 2028, giving them greater access to capital to invest in projects. Strategic authorities will also get £150 million of funding next year to build their capability to take on the new powers and manage complex projects and investment programmes.
Leaders Welcome the Plans
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."
Chancellor John Healey said the plan would make the most of "untapped and wasted" potential in English cities and regions. He 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."
Claire Ward, chairwoman 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."
London Projects Could Benefit
Labour's London Mayor Lord Sadiq Khan said the greater ability to invest could "help unlock" 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.
