Healey’s First Budget to Include Major Devolution Package to Boost Growth

Chancellor John Healey is set to unveil a major devolution package in his upcoming budget, aiming to shift spending power out of Westminster and boost regional economic growth. According to The Guardian, the plans include a new £1.5bn borrowing facility developed in collaboration with mayors over the next two years.

Regional mayors have previously complained about being constrained by limited borrowing powers compared to local authorities in the United States and other European nations. The new provisions are designed to address these concerns, freeing local leaders from seeking individual project approvals from the Treasury.

Devolution Package and Funding Details

As part of the push to decentralize authority, the budget will allocate an initial £285m in “good growth” funding for next year. Local leaders will be able to direct these funds toward priorities such as housing, transport links, and high street regeneration. To address Treasury concerns regarding administrative capacity, Healey will also announce £150m in support to help local authorities scale up and build expertise.

The £285m allocation will act as a bridge until a new system takes effect in 2028, which will see portions of income tax revenue handed directly to local areas for long-term security. Additionally, the government updated its “green book” guidance to allow complementary projects, such as combined housing and transport schemes, to be assessed together for taxpayer funding.

Broader Budget Context

Alongside the regional decentralization measures, Healey’s first budget is expected to include targeted support for households affected by rising energy costs, alongside modest tax increases including measures focused on banks. Further details regarding civil service restructuring and powers moving away from Whitehall will be outlined in a forthcoming government white paper on “rewiring the state.”

Source: Healey’s first budget to include big devolution package to boost growth (source-feed timestamp 2026-10-24T21:30:43+00:00). AI-assisted report based on the cited linked article and its RSS feed; details were not independently verified.