English mayors to get new powers and more funding to boost regional growth
English mayors and regional leaders are set to gain more funding and decision-making powers under plans to be announced in the Budget. The government says the changes are intended to help regions drive economic growth by letting local leaders direct investment towards their communities’ needs.
The plans include £285 million for next year, replacing reliance on separate Whitehall bidding pots, and a £1.5 billion borrowing facility for mayors from 2028. Strategic authorities will also receive £150 million next year to build their capacity to manage projects; areas without strategic authority status will be able to access some funding during a transition period. London Mayor Sadiq Khan said greater investment powers could help advance projects including the West London Orbital route and extensions to the Bakerloo line and Docklands Light Railway.
In short
- Mayors are due to receive more funding and investment powers.
- £285 million is allocated for next year.
- A £1.5 billion borrowing facility is planned from 2028.
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The case for
Giving mayors more funding and control could help regions respond to local needs, plan long-term projects and avoid competing for separate central-government grants. Supporters may also argue that locally accountable leaders are better placed to identify investments that support jobs and growth, while the transition arrangements give areas time to build capacity.
The case against
Concentrating more funding and borrowing powers in regional authorities could weaken central oversight and leave decisions dependent on the competence and priorities of local leaders. Critics may question whether the new bodies have enough capacity to manage large projects, and whether replacing national bidding processes will direct money to the most effective investments or distribute it fairly between regions.