The Liverpool City Region will receive more power, control and millions of pounds of funding as part of government plans to end a culture of communities having to go 'cap in hand' to Westminster.
Ahead of John Healey's first budget on Wednesday, the Chancellor has pledged to unlock growth across Britain by putting communities in control of their economic future – ending the era of power and resources being hoarded in Whitehall.
Good Growth funding confirmed
He and Prime Minister Andy Burnham say in the Budget he will put a 'downpayment' on this plan, confirming the introduction of Good Growth funding for local leaders - including Liverpool City Region Mayor Steve Rotheram - giving them the flexibility and authority to invest in what they deem the local priorities for growth without permission from Whitehall.
The Treasury says this could mean new homes where they're desperately needed, bringing empty shops and left behind high streets back to life or improving the transport links.
The idea is to reduce the current reliance on fragmented bidding pots hosted in Whitehall, with an initial £285 million in transitional seed funding being allocated by government next year to support Mayors and local leaders across England in a bid to create "good growth in every postcode."
Areas which are not yet strategic authorities will also be able to access a share of this money to unlock projects which will contribute to growth in their areas in the transitional period.
New borrowing facility and mayoral quotes
The government will also confirm that it will work with Mayors to design a new £1.5 billion borrowing facility from 2028, giving them the access to major capital for priority projects in their areas.
Chancellor of the Exchequer John Healey said: "Local people have the right to decide their own future. The North West is full of potential – but 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."
"By putting more power and funding into local hands, we can unlock growth, create opportunity and restore hope for the future in the North West."
Steve Rotheram, Mayor of the Liverpool City Region, said: "Devolution isn't an end in itself. It's the way to give places like ours the tools we need to create good jobs, build decent homes and put more money in people's pockets. 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."
"We've made real progress over the past few years, but I've always said that our best days are still ahead of us. This Budget will give us the backing to build on those foundations, go further and faster, and make an even bigger contribution to the country's success. That's good news for our region, good news for the national economy, and another step towards making good growth in every postcode a reality."
Capacity funding and Olympic feasibility study
The government will also provide Strategic Authorities with £150 million of funding next year as support to strengthen their capacity and capability as their responsibilities and powers grow.
This cash will enable mayors to begin building the resource and expertise as they take on more powers and responsibilities, so they can manage the larger budgets they are responsible for, the delivery of more complex investment programmes and make full use of expanded devolved powers they are receiving.
The Budget will also back the North's ambition to host the Olympic Games in the 2040s by commissioning UK Sport to carry out a full feasibility study, expected to report in 2029.
