Mayors and regional leaders set for increased funding and powers to stimulate economic growth
English mayors and regional leaders are poised to receive enhanced funding and expanded powers under ministerial plans aimed at stimulating nationwide economic growth, reports BritPanorama.
Chancellor John Healey announced that this strategy seeks to harness the “untapped and wasted” potential within regions and cities. The measures, to be formally unveiled in Wednesday’s Budget, include provisions for local authorities to exercise greater flexibility in investment decisions.
The government has earmarked an initial £285 million for the upcoming year, transitioning away from reliance on separate bidding pots managed from Westminster. This shift aims to empower local leaders by reducing their dependency on central government for funding.
In response to concerns from areas lacking strategic authority status, the Treasury will ensure these regions can access a portion of the funds to support them during the “transitional period.”
The government is also collaborating with mayors to establish a new £1.5 billion borrowing facility expected by 2028, which will provide local authorities with improved access to capital for investment projects. This initiative underscores a commitment to local governance and economic autonomy.
Chancellor Healey remarked, “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 emphasized that local leaders are best positioned to address their communities’ needs.
Additionally, strategic authorities will receive £150 million next year to enhance their capabilities in managing complex projects and investment programmes, thereby consolidating their newfound powers.
“I’m calling time on local leaders going cap in hand to Westminster. That is no way to run a country,” stated Prime Minister Andy Burnham, reaffirming his stance on decentralisation. He added that decisions should be made closer to home whenever possible.
Claire Ward, chair of the UK Mayors Network and Labour’s East Midlands mayor, welcomed the government’s commitment, asserting that appropriate powers and resources through increased devolution are vital for turning ambitious plans into reality. “We will continue to push for the tools we need to help our regions to thrive,” she noted.
Labour’s London Mayor Sadiq Khan highlighted that improved investment capabilities could unlock critical infrastructure projects, including the West London Orbital route and extensions to the Bakerloo underground line.
The government’s focus on enhancing local authority autonomy marks a significant shift in policy, aiming to better equip communities to drive their developmental agendas. This evolving landscape reflects a broader ambition for regional empowerment in the UK.
