Prime Minister Andy Burnham is set to give local leaders greater control over £285 million to drive economic growth, with three UK areas in line for a major cash boost. The Greater London Authority and Cambridgeshire and Peterborough Combined Authority will be among those benefiting from plans to hand local leaders more money and powers to invest in their communities.
The Government says the move will end the need for local authorities to repeatedly go cap in hand to Westminster for funding, allowing decisions on housing, transport and struggling high streets to be made closer to the communities affected. Chancellor John Healey will set out plans at the Budget to unlock growth across Britain by giving local leaders greater control over their economic futures.
Good Growth funding scheme
As an initial step, £285 million in transitional funding will be allocated next year to support mayors and local leaders across England. The money will be provided through a new Good Growth funding scheme, giving local authorities greater flexibility to decide which projects deserve investment without having to seek permission from Whitehall.
The funding could be used to build much-needed homes, revive empty shops and struggling high streets, or improve transport links to help people access jobs and other opportunities. Areas which have yet to become strategic authorities will also be able to access a share of the money to support projects designed to stimulate growth during the transition period.
Reducing reliance on Whitehall
The Government says the plans will reduce reliance on fragmented funding pots, which currently require local leaders to bid for money from Whitehall. Ministers will also confirm plans to work with mayors on a new £1.5 billion borrowing facility from 2028, giving them access to the capital needed to finance major local projects.
Mr Healey said: “Local people have the right to decide their own future. London and the South East is full of potential – but it has gone untapped and wasted while money and power has been held in Westminster.”
Mayors welcome the plans
London Mayor Sadiq Khan welcomed the plans, saying they marked an important step towards giving local leaders greater control over their finances. He said the additional investment powers could help unlock major infrastructure projects, including the proposed West London Orbital and Bakerloo Line Extension, Stratford International and an extension of the Docklands Light Railway to Thamesmead.
Mr Khan said the projects could support tens of thousands of new homes, jobs and economic growth. The Government will also provide strategic authorities with a further £150 million next year to strengthen their capacity as their responsibilities and powers expand. The funding is intended to help mayors build up the expertise and resources needed to manage larger budgets, deliver more complex investment programmes and make full use of their devolved powers.
