UK Budget to Unveil £1.5bn Devolution Borrowing Package
Chancellor John Healey's first budget will include a £1.5bn borrowing facility aimed at shifting spending power away from Westminster to local leaders.
Chancellor John Healey will use his debut budget to announce a significant devolution package, including a new £1.5 billion borrowing facility designed to give local leaders in England greater control over spending decisions, according to reports ahead of Wednesday's statement.
Greater Manchester Mayor Andy Burnham, a prominent advocate for regional empowerment, signaled that the move would mark a turning point for local authorities, pledging that council and city leaders would no longer be forced to seek central government approval for funding at every turn. The phrase "cap in hand to Westminster" has long been used by devolution supporters to describe the dependency local governments have on Whitehall for fiscal decisions.
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The £1.5 billion facility is expected to be developed in close consultation with elected mayors over a two-year period, suggesting a collaborative rather than top-down approach to designing the framework. While the specific terms and eligibility criteria have not yet been disclosed, the initiative represents one of the more concrete growth-oriented measures flagged ahead of the budget.
The announcement fits within a broader Labour government strategy to stimulate economic growth through regional investment and decentralization, moving decision-making closer to the communities most affected. Analysts have noted that meaningful fiscal devolution could allow faster infrastructure and housing decisions, though the detail of how borrowing powers will be structured remains to be seen following Wednesday's statement.
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