West Yorkshire mayor welcomes Budget funding boost as regions set for more power

Mayors and regional leaders in England will be given extra funding and greater control in the Budget as ministers hope to boost economic growth across the country.

Chancellor John Healey said the plan would make the most of “untapped and wasted” potential in English cities and regions.

Prime Minister Andy Burnham, who has long called for greater devolution from Whitehall, said the move would stop local leaders having to go “cap in hand” to Westminster for investment.

The plans, which will be formally announced in Wednesday’s Budget, will give them more flexibility and authority to make investment decisions.

West Yorkshire Mayor Tracy Brabin said: “We know that devolution is working for West Yorkshire, and this government is set to go further than ever before to deepen that relationship and put power closer to the people.

"Mayors know their areas best, so having more control over where investment goes to ensure it has the best impact will help deliver growth in every postcode.

"This additional funding to enable us to deliver better outcomes for local people is a welcome step forward as we rewire the state."

The Government has allocated an initial £285 million next year, with the move intended to shift away from reliance on different bidding pots managed from Whitehall.

In an effort to address criticism from areas which do not yet have strategic authority status, the Treasury said they will still be able to access a share of the money to support them in the “transitional period”.

The Government will also work with mayors to design a new £1.5 billion borrowing facility from 2028, giving them greater access to capital to invest in projects.

The Chancellor said: “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.”

Strategic authorities will also get £150 million of funding next year to build their capability to take on the new powers and manage complex projects and investment programmes.

The Prime Minister said: “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.”