Mayor welcomes Government plans to grant regional leaders more money, powers and capacity

It has today been announced that Mayors and local leaders will get more money, more powers and more control, ending the days of communities having to go cap in hand to Whitehall and putting decisions about their future in local hands.

The government’s plans will reduce 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 to ensure there is good growth in every postcode.

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 capital needed to back the local priorities that will build growth in every postcode.

Mayor Claire Ward, Chair of UK Mayors, said:

“I’ve always believed that decisions are best made by the people who understand their communities and the challenges they face. But too often, local leaders have had to navigate a maze of funding pots, with tight restrictions on how money can be spent.

 ”That’s why I’ve championed bringing more power and funding from Whitehall into to the East Midlands, so we can focus on what matters most to the people who live and work here. More flexible funding will help us to get on with the job – whether that’s building the homes people need, improving transport links between communities, or creating opportunities for people to get on in life.

 “I want to make the East Midlands the best place to live, work and learn. Having the right powers and resources through increased devolution will help me turn that ambition into reality, to deliver real and lasting change for our communities.

 ”I welcome this commitment from Government and will continue to push for the tools we need to help our region to thrive.”

The approach builds on the work the Prime Minister oversaw during his time as Mayor of Greater Manchester, where a similar pioneering fund crowding in private investment through public investment is already backing housing, employment space and major infrastructure by giving local leaders the flexibility to invest in the projects that can make the biggest difference to their area.

Prime Minister Andy Burnham 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.

“Today, we’re putting that into practice, shifting power into the hands of the people who know their communities best.”

The Budget

At the Budget, Chancellor John Healey will pledge 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.

The Chancellor has put a downpayment on that promise, confirming plans to introduce Good Growth funding for local leaders across England – giving them the flexibility and authority to invest in what they deem the local priorities for growth without permission from Whitehall.

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.

Chancellor of the Exchequer John Healey said:

“Local people have the right to decide their own future. 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.

“By putting more power and funding into local hands, we can unlock growth, create opportunity and restore hope for the future.”

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.

Secretary of State for Housing, Communities and Local Government Angela Rayner said:

“We’re putting a stop to mayors and local leaders being forced to come to Westminster cap in hand, asking for the power and funding that should rightfully be theirs.

“We’re backing our leaders to deliver what their communities need, from much-needed housing developments, stronger and better transport links, and the regeneration of the places people care so much about.

“That is what our devolution revolution really means – real decisions made locally, backed by real money, so every town and city can shape its own future.”

The plans are a reflection of the Treasury, MHCLG and No10 North working hand-in-hand with Mayors and local leaders to rewire the state and deliver growth in every postcode in Britain.