Mayors and regional leaders are to be handed more money and more powers to help transform communities.
The plans, which will be formally announced in Wednesday’s Budget, will give local officials more flexibility and authority to make investment decisions. Prime Minister Andy Burnham, a former Greater Manchester Mayor, claimed the move would stop local leaders having to go “cap in hand” to Westminster for investment.
The Government has allocated an initial £285million next year, with the move intended to end the reliance on different bidding pots managed from Whitehall.
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The PM 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.”
Areas without a strategic authority status won’t be left behind, with the Treasury saying they can access a share of the money to support them in the “transitional period”.
The Government will also work with mayors to design a new £1.5billion borrowing facility from 2028, giving them greater access to capital to invest in projects.
Chancellor John Healey said the plan would make the most of “untapped and wasted” potential in English cities and regions.
He 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.
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Claire Ward, chairwoman of the UK Mayors Network and Labour‘s East Midlands mayor said: “Having the right powers and resources through increased devolution will help us to turn our ambitious plans into reality and deliver real, lasting change for our communities.
“I welcome this commitment from Government and will continue to push for the tools we need to help our regions to thrive.”
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Labour’s London Mayor Lord Sadiq Khan said the greater ability to invest could “help unlock” projects including the West London Orbital route, the extension of the Bakerloo underground line and Docklands Light Railway and the development of Stratford International station.
England’s Mayors to Be Boosted With ‘More Money and More Power’ in Budget
England’s regional mayors could receive greater financial resources and expanded responsibilities under plans expected to feature in the government’s Budget, potentially marking a significant change in how local areas are funded and managed.
The proposals come amid growing pressure on the government to improve public services, encourage economic growth and give communities greater control over decisions affecting their daily lives.
For regional leaders, additional funding and wider powers could create new opportunities to address transport problems, support housing development and attract investment. However, the scale of any changes will depend on the details of the Budget and the arrangements established by the government.
The plans also raise important questions about accountability, local democracy and whether transferring more responsibility away from Westminster will produce better outcomes for residents.
A New Direction for Local Government
For decades, many important decisions affecting English communities have been made by central government. Local authorities and regional leaders have often argued that this approach limits their ability to respond to the specific needs of their areas.
Different regions face different economic challenges. Some need better transport connections to support employment, while others struggle with housing shortages, declining high streets or limited investment in local infrastructure.
Supporters of greater devolution argue that mayors are often better placed to identify these problems because they work directly with local businesses, councils and communities.
Giving mayors more money and more power could allow them to develop longer-term plans rather than relying on a succession of short-term funding applications.
Instead of waiting for separate decisions from Whitehall, regional authorities could potentially have greater flexibility to direct resources towards their most pressing priorities.
The government has presented devolution as a way to strengthen local leadership and encourage economic growth outside London and the South East.
However, the effectiveness of this approach will depend on whether new responsibilities are accompanied by sufficient funding, qualified staff and clear accountability arrangements.
What More Money Could Mean for Regional Communities
Additional funding could support several areas of regional development.
Transport is likely to remain a major priority. In many parts of England, commuters face unreliable services, congestion and limited public transport options.
Regional mayors could use additional resources to improve bus networks, coordinate transport planning and support infrastructure projects connecting residential areas with employment centres.
Better transport links can make it easier for people to access jobs, education and healthcare. They can also help businesses recruit workers and reach customers.
Housing is another important issue.
Many communities face pressure from rising rents, limited housing supply and difficulties for first-time buyers. Regional leaders could use additional funding and planning powers to support housing construction, regenerate unused sites and coordinate development with local infrastructure.
Economic development could also benefit.
Mayors may be able to direct investment towards business districts, industrial sites, training programmes and regeneration projects intended to attract employers.
Such initiatives could help communities that have experienced industrial decline or struggled to attract private investment.
Nevertheless, funding alone cannot guarantee success. Projects must be carefully planned, supported by appropriate infrastructure and evaluated to ensure that public money produces meaningful benefits.
More Power for Mayors Could Change Decision-Making
The prospect of expanded powers is just as significant as the possibility of additional funding.
Greater devolution could allow mayors to make more decisions about regional transport, housing, skills and economic development.
This could reduce the need for local leaders to seek approval from central government for every major initiative.
Regional authorities might also gain greater flexibility to coordinate policies across multiple local council areas.
This is particularly important when transport networks, housing markets and employment patterns extend beyond individual council boundaries.
A railway improvement or new employment development can affect several neighbouring communities, making coordinated planning essential.
However, additional powers would need to be accompanied by clear rules defining the responsibilities of mayors, local councils and national government.
Residents should know which officials are responsible for particular decisions and how they can hold those officials accountable.
Without clear arrangements, greater devolution could create confusion rather than improve public services.
Andy Burnham and the Debate Over Devolution
Greater regional autonomy has been an important subject in English politics, particularly in metropolitan areas where mayors have argued for more control over local economic policy.
Andy Burnham, the Mayor of Greater Manchester, has frequently advocated greater devolution and stronger regional decision-making.
His approach has emphasised the importance of giving local leaders the resources and flexibility needed to address problems affecting their communities.
Supporters of devolution argue that mayors can develop policies tailored to local circumstances rather than relying on uniform decisions made in Westminster.
However, the transfer of responsibilities also creates challenges.
Different regions have different economic strengths, administrative capacities and financial needs. A funding arrangement that works well in one area may not produce the same results elsewhere.
The government will therefore need to consider how resources are distributed and whether less prosperous regions receive sufficient support.
There is also the question of how new arrangements will interact with existing local government structures.
Mayors cannot operate independently of councils, public service providers and national institutions. Effective cooperation will remain essential.
The Financial Challenge Facing the Government
Expanding the responsibilities of regional mayors will require careful financial planning.
The government faces competing demands for spending on healthcare, education, transport, defence and other public services.
Any additional funding for regional authorities must therefore be considered alongside the wider state of public finances.
Ministers will need to explain whether new resources will come from existing departmental budgets, additional government spending or alternative funding arrangements.
They will also need to clarify whether the money will be available for immediate projects or distributed over several years.
Long-term infrastructure projects often require predictable funding because planning, construction and delivery can take considerable time.
If regional authorities receive new responsibilities without reliable financial support, they may struggle to deliver the improvements expected of them.
Conversely, providing funding without effective oversight could create concerns about waste or poor project selection.
A successful approach would need to balance local flexibility with transparent financial management.
Will Residents See Improvements in Everyday Life?
For residents, the most important question is whether the proposed changes will make a noticeable difference.
People are unlikely to judge devolution solely by the number of powers transferred from Westminster.
They will want to know whether buses become more reliable, housing becomes more accessible, local roads improve and employment opportunities expand.
Businesses will also be interested in whether regional investment makes it easier to recruit staff, transport goods and establish new operations.
These outcomes will take time to measure.
Infrastructure projects may require years of preparation before the benefits become apparent, while training programmes and business support schemes may produce results gradually.
The government and regional authorities will therefore need to establish clear targets and explain how progress will be monitored.
Regular reporting could help residents understand how public money is being spent and whether promised improvements are being delivered.
It would also allow comparisons between regions without assuming that every area faces identical challenges.
Accountability Must Remain a Priority
Giving mayors greater authority also increases the importance of accountability.
Mayors exercise public responsibilities and must be able to explain how decisions are made, why particular projects receive funding and what benefits residents can expect.
Clear financial reporting, independent scrutiny and effective public consultation can help ensure that additional powers are used responsibly.
Local communities should have opportunities to express concerns about major developments and understand how decisions affecting their neighbourhoods are reached.
There must also be mechanisms for identifying projects that are failing to meet their objectives and making changes when necessary.
Devolution should not mean that decisions become less transparent simply because they are made closer to home.
Instead, it should create opportunities for residents to engage more directly with the people responsible for regional policy.
What Happens Next?
The Budget is expected to provide further information about the government’s financial priorities and its approach to regional devolution.
The precise implications for England’s mayors will depend on the measures formally announced, the regions covered and the timetable for implementation.
It will also be important to establish whether the changes represent new funding, greater flexibility over existing budgets or a combination of both.
For regional leaders, the proposals could create opportunities to pursue projects that have previously been constrained by limited resources or central government approval.
For the government, they could form part of a broader effort to strengthen regional economies and make public administration more responsive to local needs.
However, the success of the plans will ultimately depend on implementation rather than political announcements alone.
Giving England’s mayors ‘more money and more power’ could reshape the relationship between Westminster and regional communities.
If accompanied by sufficient funding, effective oversight and clearly defined responsibilities, greater devolution could help local leaders respond to the challenges facing their areas.
But residents will expect tangible results, not simply a redistribution of authority.
The real test will be whether the Budget leads to better transport, more housing, stronger local economies and public services that respond more effectively to the needs of the people they serve.