More power moved out of Westminster

Finance minister John Healey will use next week's Budget to hand mayors in England new funding and powers, including a £1.5 billion borrowing facility, as part of plans to move economic decision-making out of Westminster, Reuters reported on 24 October 2026. The package also includes £285 million of seed funding next year under a new Good Growth scheme.

The finance ministry said the Good Growth funding would let local leaders invest in their own growth priorities without seeking permission from central government. The funds could be used for housing, regenerating high streets and improving transport links. The government said it would work with mayors to design the borrowing facility, which would give them access to capital to back local growth projects.

What local leaders say

Prime Minister Andy Burnham was quoted as saying: "I'm calling time on local leaders going cap in hand to Westminster. That is no way to run a country." The line framed the package as a change in how local growth is funded, away from fragmented bidding pots run from the centre.

Strategic authorities will also receive a further £150 million next year to build up staff and expertise as they take on bigger budgets, according to the report. The measures are expected to be announced in Healey's Budget on Wednesday. The full Budget will show how the borrowing facility will be governed, which authorities qualify, and how the Good Growth money will be allocated in practice.