Chancellor John Healey Announces Major Devolution Package for England

Chancellor John Healey will introduce a major devolution package in next week's budget to stimulate regional economic growth across England. The plan establishes a new £1.5 billion borrowing facility developed in coordination with regional mayors and provides an initial £285 million in good growth funding for local transport and housing priorities.

To address concerns from HM Treasury regarding administrative capacity, the government will allocate £150 million to help local authorities scale up their expertise. The Treasury has also updated its green book guidance to allow combined projects to be considered together for funding. By 2028, the government intends to implement a system that hands some income tax revenue directly to local areas.

Mayor of Greater Manchester Andy Burnham advocated for the shift of power away from Westminster, stating that local leaders should no longer have to go cap in hand to the central government. The upcoming budget is also expected to include modest tax increases on banks and support for households facing rising energy costs.