Next week's Budget will include £285 million of funding to support local economies across England, the government has said, with the money aimed at letting mayors and local leaders make more decisions closer to home. Chancellor John Healey said local leaders know what their communities need to grow, and that the funding would give them more money, more power and more capacity to get projects moving and build homes.

What the funding is for

The announcement, reported on 25 October 2026 ahead of the Budget on 28 October, frames the money as support for local growth: projects, homes and decisions taken locally rather than centrally. The government has not yet published the detailed allocation by area, so readers should watch the Budget statement itself for which places receive what, and over what period the money will be spent. Until then, £285 million is the announced total, not a confirmed local breakdown.

The defence spending argument running alongside it

The announcement comes as the Conservatives challenged Healey to deliver a plan to raise defence spending to 3 percent of GDP by 2030. Healey resigned as defence secretary in June 2026 during a row about defence funding, warning that the government's failure to fund the military adequately made Britain less safe. Shadow chancellor Andrew Griffith said Healey must have fully funded 3 percent defence spending by the end of his Budget statement, or resign.

What to watch in the Budget

Two tests will matter on Wednesday: whether the £285 million is new money with clear local allocations, and whether the Budget answers the defence funding challenge. Both questions can only be settled by the statement itself, and this brief will be updated when it is published. Sources: Sky News via Great Yorkshire Radio; government announcement as reported.