Key facts
- An initial £285 million will be allocated next year for devolution of powers and funding to local leaders.
- A new £1.5 billion borrowing facility is planned from 2028 for mayors to invest in projects.
- Strategic authorities will receive £150 million next year to build their capability for new powers.
- Over £1 billion will be provided for social and affordable housing over 10 years.
- Councils will be offered preferential interest rates to borrow for housebuilding.
The UK government is set to announce a significant funding boost and increased powers for mayors and regional leaders in an upcoming Budget. The initiative aims to shift decision-making and investment power away from Whitehall to local communities, with an initial £285 million allocated for next year. This move is intended to stimulate economic growth by enabling local leaders to better address their areas' needs, including housing development. Prime Minister Andy Burnham emphasized that this devolution would end the practice of local leaders having to "go cap in hand" to Westminster for investment. The plans also include over £1 billion for social and affordable housing and a new £1.5 billion borrowing facility from 2028.