English mayors to get new powers and more funding to boost regional growth

English mayors to get new powers and more funding to boost regional growth The PM says it will prevent local leaders from having to go ‘cap in hand’ to Whitehall - Bookmark - CommentsGo to comments Become an Independent member to bookmark this article Already a member? Log in English mayors and regional leaders are set to receive increased funding and expanded powers in the Budget, under ministerial plans to stimulate nationwide economic growth. Chancellor John Healey said that the strategy aims to harness the “untapped and wasted” potential within regions and cities. Prime Minister Andy Burnham, who has long advocated decentralisation from Whitehall, said that the move would prevent local leaders from having to go “cap in hand” to Westminster for investment funding. Due to be formally unveiled in Wednesday’s Budget, the plans grant local authorities enhanced flexibility when making investment decisions. Ministers have allocated an initial £285 million for next year, moving away from reliance on separate bidding pots managed directly from Whitehall. In an effort to address criticism from areas which do not yet have strategic authority status, the Treasury said that 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. Mr Burnham 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.” Claire Ward, the chair 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.” Labour’s London Mayor Lord Sadiq Khan said the greater ability to invest could “help unlock transformational infrastructure 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. Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments