East Midlands Mayor Secures New Funding Powers for Regional Growth and Jobs
Chancellor John Healey's Autumn Budget grants increased control over locally raised money, boosting Derby's aerospace sector and local priorities.
By Sarah Bancroft
••3 min read
AI
Generic image.
The Mayor of the East Midlands, Claire Ward, has welcomed the Autumn Budget, which grants mayors more control over locally raised money and includes significant investment in Derby’s aerospace industry.
The new funding powers will enable Mayor Claire Ward to invest in local priorities, support businesses, and create jobs across the region. The budget, presented by Chancellor John Healey, includes a £2.5 billion investment into Rolls-Royce for the development of next-generation jet engines, a significant boost for its major site in Derby and thousands of employees across the East Midlands.
A key change is the allocation of 20% of locally raised business rates income to mayors from next year. Business rates are taxes paid by commercial properties such as shops and offices. The government also plans for all business rates to be kept within local areas by the end of the decade, with mayors expected to receive a share of income tax from 2028, further enhancing local control and funding opportunities.
The budget also confirmed £285 million in funding announced last week to support mayors and local leaders, alongside a new £1.5 billion loan facility to back growth-focused local priorities. These measures could lead to improvements in public transport, new housing, and skills development for employment.
Support for the region's aerospace and advanced manufacturing industries is also outlined. A 10-year programme with Rolls-Royce, backed by £2.5 billion, aims to develop new aircraft engine technologies for civilian and military use, expected to support 3,300 jobs by 2029. Additionally, the previously announced £1.2 billion contract for Alstom's Derby Litchurch Lane project, building 29 battery-powered trains for the TransPennine route upgrade, will support over 350 jobs.
Further support for local communities includes a £100 million national investment in an apprenticeship service to connect young people with employers. Small business rate thresholds will rise from £12,000 to £18,000, and families in council tax bands A-D will receive a £100 discount on energy bills.
“
"It was brilliant to be present for the Autumn Budget, the first by our new Chancellor, John Healey and particularly heartening to hear his support of the upcoming Trent Sports District in Nottingham. This budget is one that recognises the vital contribution that the East Midlands plays in national economic growth. The £2.5 billion investment into Rolls-Royce to develop the next generation of jet engines is hugely significant. With one of its major sites based in Derby and thousands of people from right across the East Midlands working there. The decision to give mayors a 20% share of business rates income from next year is also an important step towards greater local control and means I can prioritise funding where it matters most to residents."
“
"I am also delighted the government is funding £100m nationally into a local apprenticeship service to match young people to employers, as well as increasing the small business rates thresholds, which will provide much-needed breathing space for many firms in the East Midlands. At a time when many families are feeling pressure when paying the bills, it is also very encouraging to see additional support for households through the £100 discount on energy bills for council tax bands A-D. Taken together, these measures have the potential to support people, businesses and jobs across the East Midlands, and I look forward to ensuring that our region makes the most of the opportunities this budget brings."
