English mayors to gain access to a 1.5 billion pound borrowing fund
Britain plans a 1.5 billion pound borrowing facility to help English mayors finance local growth projects. The Budget measures also include seed funding for housing, transport and high streets, plus support for strategic authorities’ staffing and expertise. The immediate arrangements precede a new system intended to transfer some income-tax revenue directly to devolved areas in 2028.
Economics & Markets··Midday
A borrowing facility for local projects
The British government plans to give mayors in England access to a 1.5 billion pound borrowing facility for local growth projects. Finance minister John Healey is due to announce the measures in the following week’s Budget. Prime Minister Andy Burnham outlined the fund ahead of that announcement, describing borrowing that could help major projects begin over the next two years.[1], [2]
The government will work with mayors on the design of the facility. The proposal concerns access to capital for investment, with local leaders choosing projects that support their areas’ growth. It forms part of a broader effort to move economic decisions away from Westminster, the seat of the British central government, and give devolved areas greater discretion over investment.[1]
Good Growth funding covers housing and transport
A separate programme, called Good Growth, will receive 285 million pounds in seed funding next year. Local leaders could use it for housing, improvements to transport links or regeneration of high streets. The finance ministry said they would be able to invest in their own growth priorities without first seeking individual permission from central government.[1]
The government wants to reduce reliance on fragmented central funding pots requiring separate bids. Burnham presented the changes as a way to end repeated requests to Westminster for support. HuffPost UK described the initial funding as an interim arrangement until 2028, when a new system is intended to transfer some income-tax revenue directly to devolved areas.[1], [2]
Authorities will receive support for larger responsibilities
Strategic authorities, the local structures taking on devolved responsibilities, will receive a further 150 million pounds next year. That support is intended to help them build staffing and expertise as they manage larger budgets. It is separate from both the borrowing facility and the Good Growth seed funding, rather than another description of either amount.[1]
Burnham said areas still establishing strategic authorities would also have access to funding. Local leaders have been discussing obstacles to growth at weekly No.10 North meetings, part of the government’s regional engagement. The Budget had not yet been presented when the plans were outlined; work between ministers and mayors will determine the borrowing mechanism’s detailed design. Burnham also cited an overnight visitor levy, allowing local leaders to introduce a small charge on hotel stays, as another means of raising local revenue.[1], [2]
