Chancellor John Healey is set to unveil a significant devolution package in his upcoming budget, building on Andy Burnham’s commitment that local leaders in England will no longer have to come "cap in hand to Westminster". This announcement is expected on Wednesday as part of a fresh initiative to devolve spending power.
New Borrowing Facility
The budget will feature plans for a new £1.5 billion borrowing facility, developed in collaboration with regional mayors over the next two years. Local leaders have long expressed frustration over their limited borrowing capabilities, especially when compared to local authorities in the US and parts of Europe, which often issue their own bonds.
Boosting Regional Growth
This borrowing plan is part of a broader devolution strategy aimed at enhancing regional economic growth. It will also include an initial allocation of £285 million in "good growth" funding for the next year, which local leaders can use for priorities such as housing, transport links, or high street regeneration.
In response to concerns from the Treasury regarding the capacity of some local authorities to manage larger budgets, Healey will announce £150 million in support to help these authorities scale up and build necessary expertise.
Empowering Local Leaders
Burnham praised the plans, stating that they will eliminate the need for local leaders to seek Treasury approval for each project. He remarked:
