Budget to hand English mayors £285m Good Growth fund and £1.5bn borrowing powers

Chancellor John Healey will use Wednesday’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)

The measures include £285 million of seed funding next year under a new “Good Growth” scheme, which the finance ministry said would let local leaders invest in their own growth priorities without seeking permission from central government. The funds can be used for housing, regenerating high streets and improving transport links. (Reuters)

The government will work with mayors to design the £1.5 billion borrowing facility, available from 2028, to give them access to capital to back local growth projects. Strategic authorities will receive a further £150 million next year to build up staff and expertise as they take on bigger budgets. (Reuters, BritBrief)

“I’[STRING_PLACEHOLDER_1]‘s a way to run a country,” Prime Minister Andy Burnham said. Healey said: “Local people have the right to decide their own future. 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.” (Reuters, BritBrief)

London Mayor Sadiq Khan welcomed the plans, saying the greater ability to invest could help unlock projects including the proposed West London Orbital, the Bakerloo Line extension, a Docklands Light Railway extension to Thamesmead and Stratford International. Liverpool City Region Mayor Steve Rotheram and Claire Ward, chair of the UK Mayors Network and East Midlands mayor, also welcomed the commitment. (BritBrief, BritBrief)

The measures are to be confirmed in Wednesday’s budget; the borrowing facility itself would be designed with mayors and available from 2028, rather than taking effect immediately. (Reuters)

Sources

• Reuters: https://www.reuters.com/world/uk/uk-budget-set-hand-english-mayors-new-borrowing-powers-growth-funding-2026-10-24/
• BritBrief: https://britbrief.co.uk/politics/devolution/englands-mayors-to-get-more-money-and-powers-in-budget.html
• BritBrief: https://britbrief.co.uk/politics/devolution/three-uk-areas-get-285m-boost-via-new-good-growth-funding.html
• The Times: https://www.thetimes.com/uk/politics/article/jon-healey-autumn-budget-2026-defence-spending-zp6d8sr0l