Chancellor John Healey will announce a major devolution package in next week's budget aimed at giving local leaders in England greater spending power, according to plans discussed with Andy Burnham, mayor of Greater Manchester.
The package will include a new £1.5bn borrowing facility to be developed over the next two years in collaboration with mayors across England. Burnham has said the move addresses a longstanding frustration among local leaders, who have previously had to seek approval from Westminster for spending decisions.
The devolution initiative forms part of Healey's broader effort to boost economic growth through decentralising fiscal authority. By allowing local authorities greater control over borrowing and spending, the government aims to enable regions to pursue development priorities tailored to their specific needs rather than relying on centrally determined allocations.
The budget statement is scheduled for Wednesday.