Andy Burnham Vows Local Leaders Will No Longer Have To Go 'Cap In Hand' To Westminster

Local leaders in England will have more freedom to invest in their communities in next week’s Budget, Andy Burnham has revealed. Writing exclusively for HuffPost UK, the prime minister announced plans to set up a new £1.5 billion fund that mayors can borrow from to get major projects “off the ground” in their areas over the next two years. Local leaders will also receive an initial £285 million of funds next year so they no longer have to go “cap in hand to Westminster”.

That money can be spent on any area the local leaders choose, from housing to transport or high street development. This funding will only be in place until 2028 when a new system – allowing some income tax revenue to be handed directly to the devolved areas – replaces it. Chancellor John Healey is also set to outline £150 million of support to help mayors scale up in his Budget on Wednesday. It’s all part of the government’s push to end centralised tax and spending in the UK and follows No.10 North’s weekly “situation room” meetings where local leaders discuss the obstacles to economic growth.

Burnham also said funding will be available to areas which are in the process of setting up strategic authorities “so no postcode is left behind”. He claimed the Labour government is “giving local leaders new ways to raise money of their own”, including the overnight visitor levy which allows leaders to introduce a small charge on hotel stays. “When I became prime minister, I gave every one of my ministers the same instruction: if a decision can be made closer to home, it should be,” Burnham said.

“Devolution by default.” Burnham said this is part of his “theory of growth”. “It starts by retaking control of the essentials that make a place work or not,” he said. “Because you’ve got to have that control over the fundamental things that everybody needs. “And from there you devolve more power to places to put them in charge to decide their own destiny. “And then in doing those things we optimise the conditions for businesses to grow and make sure we support our people so they are there for our businesses to employ.”

Wednesday’s Budget is also expected to offer support for poorer homes hit by the soaring energy bills. Tax rises, particularly on banks, are likely to be included, too, as the government looks to ease the strain on British households and businesses amid the Iran war. Healey will also explain his plans to fund a four-year defence investment plan. However, the chancellor is unlikely to say how the UK will commit to spending 3% of GDP, which will be delayed until a spending review next year.

Listen to Commons People, the podcast that makes politics easy. Every week, Kevin Schofield and Kate Nicholson unpack the week’s biggest stories to keep you informed. Join us for straightforward analysis of what’s going on at Westminster.