Healey’s first budget to include big devolution package to boost growth
John Healey’s first budget is set to include a devolution package giving English local leaders more control over spending, with the aim of boosting regional growth. Andy Burnham said the changes would reduce the need for mayors to seek central government approval for individual projects.
The plans include a £1.5bn borrowing facility to be developed with mayors over two years, £285m in initial “good growth” funding next year and £150m to help local authorities manage larger budgets. The temporary funding is intended to bridge the gap until a system planned for 2028 gives some income tax revenue directly to local areas. The budget is also expected to include help with energy costs and modest tax rises.
In short
- Healey plans a £1.5bn borrowing facility for local leaders.
- Local areas will receive £285m in growth funding next year.
- The budget is expected to include energy support and tax rises.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Giving local leaders more control over spending could help them respond to regional needs and make decisions faster, with mayors better placed to identify projects that support local growth. The borrowing facility and interim funding could help areas begin investing before the planned 2028 revenue-sharing system is in place.
The case against
Greater local discretion may make it harder to ensure public money is allocated consistently and scrutinised effectively across England. The temporary funding and borrowing facility may also create uncertainty about long-term affordability, while devolution alone cannot guarantee that local investment will generate growth.