{"id":127558,"date":"2026-10-25T07:30:00","date_gmt":"2026-10-25T07:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=127558"},"modified":"2026-10-25T06:28:49","modified_gmt":"2026-10-25T06:28:49","slug":"new-285m-funding-plan-unveiled","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/new-285m-funding-plan-unveiled\/","title":{"rendered":"New \u00a3285m Funding Plan Unveiled as Labour Promises to Put Local Communities First"},"content":{"rendered":"\n

Prime Minister Andy Burnham said the changes would reduce local authorities\u2019 dependence on Westminster <\/strong>for individual funding decisions. The package also includes plans for a \u00a31.5 billion borrowing facility and additional support for regional administrations taking on wider responsibilities.<\/p>\n\n\n\n

A \u00a3285M Fund To Give Local Leaders More Control<\/strong><\/h2>\n\n\n\n

The government will allocate an initial \u00a3285 million next year through a new Good Growth <\/strong>funding scheme, designed to support investment priorities identified by local leaders rather than determined centrally in Whitehall. According to the BBC<\/a>, the funding will help reduce reliance on fragmented government funding arrangements, under which councils and regional authorities must compete for separate pots of money to finance individual projects.<\/p>\n\n\n\n

The money could support new housing developments, improvements to transport connections and efforts to regenerate struggling high streets. Areas that have not yet established strategic authorities <\/strong>will also be eligible for a share of the funding.<\/p>\n\n\n\n

Burnham, who previously served as mayor of Greater Manchester, has made decentralisation a central part of his premiership. He has promised what he describes as the country’s biggest rebalancing of political power. “I’m calling time on local leaders going cap in hand to Westminster. That is no way to run a country<\/em>,” the prime minister said.<\/p>\n\n\n\n

The Guardian<\/a> reports that the \u00a3285 million allocation will provide transitional support ahead of a new funding system expected in 2028, when some income tax revenue will be directed to local areas. Under the proposed arrangements, regional leaders are expected to retain some additional revenues generated by stronger local economic activity, giving them greater financial control over investment decisions.<\/p>\n\n\n\n

\"\"
Labour’s \u00a3285m funding boost could help improve local streets, housing and transport across England. \u00a9Canva<\/em><\/figcaption><\/figure>\n\n\n\n

New Borrowing Powers and Housing Investment Form Part of the Budget<\/strong><\/h2>\n\n\n\n

Alongside the immediate funding, the Treasury will work with mayors to develop a \u00a31.5 billion borrowing facility from 2028. The arrangement is intended to provide access to capital for larger infrastructure and development projects.<\/p>\n\n\n\n

Regional mayors have repeatedly raised concerns about restrictions on their borrowing powers, particularly compared with local administrations <\/strong>in the United States and parts of Europe. The government will also provide \u00a3150 million next year to help strategic authorities strengthen their administrative capacity and expertise as they assume greater financial responsibilities. According to the BBC, Wednesday’s Budget<\/a> will include more than \u00a31 billion for social and affordable housing <\/strong>in England, taking funding for the government’s 10-year housing programme beyond \u00a340 billion.<\/p>\n\n\n\n

London Mayor Sadiq Khan<\/strong> welcomed the prospect of expanded investment powers, identifying projects including the Bakerloo line extension, the West London Orbital route and improvements at Stratford International station. The Treasury is also reviewing how public investment projects are assessed, allowing related housing and transport proposals to be considered together when evaluating their potential contribution to economic growth.<\/p>\n\n\n\n

Healey said mayors and local leaders understood their communities’ investment needs and should have greater authority to act on them. Further details of the proposed changes are expected in Wednesday’s Budget<\/strong>, with a subsequent government white paper setting out how responsibilities will be transferred from Whitehall to regional authorities.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Labour government has announced \u00a3285 million in funding for communities across England, with mayors and local leaders set to gain greater control over decisions affecting housing, transport and economic development. The measures will form part of Chancellor John Healey\u2019s first Budget, due on Wednesday.<\/p>\n","protected":false},"author":10,"featured_media":127561,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-127558","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/127558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=127558"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/127558\/revisions"}],"predecessor-version":[{"id":127562,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/127558\/revisions\/127562"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/127561"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=127558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=127558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=127558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}