The government's new strategy aims to reduce the reliance on fragmented bidding processes managed in Whitehall. An initial £285 million in transitional seed funding will be allocated next year to support Mayors and local leaders throughout England, fostering good growth in all areas. Furthermore, the government will collaborate with Mayors to establish a new £1.5 billion borrowing facility from 2028, providing access to capital for local priorities that drive growth.
Mayor Claire Ward, Chair of UK Mayors, welcomed the changes, stating, "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." She added that more flexible funding will enable focus on local needs, such as housing, transport, and creating opportunities.
Prime Minister Andy Burnham commented, "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."
At the upcoming Budget, Chancellor John Healey is set to pledge unlocking growth across Britain by empowering communities. The government will introduce 'Good Growth' funding for local leaders across England, granting them autonomy to invest in local growth priorities without requiring Whitehall's approval. Additionally, Strategic Authorities will receive £150 million next year to enhance their capacity and capability as their responsibilities expand.
Chancellor John Healey stated, "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."
Secretary of State for Housing, Communities and Local Government Angela Rayner added, "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."
