Regional mayors have long complained that they are constrained by their limited borrowing power \u2013 in contrast to local authorities in the US and some European countries, which commonly issue their own bonds.<\/p>\n
The borrowing plan will form part of a big devolution package aimed at boosting regional economic growth. This will also include the allocation of an initial \u00a3285m \u201cgood growth\u201d funding next year, to be spent on local leaders\u2019 priorities \u2013 which could include housing, transport links or high street regeneration.<\/p>\n
Amid fears in the Treasury about whether some local authorities have the capacity to administer increasingly large budgets, Healey will also announce \u00a3150m of support to help them scale up and build expertise.<\/p>\n
Hailing the plans, Burnham said they would mean local leaders would no longer need to come to the Treasury for approval for each individual project. \u201cI\u2019m calling time on local leaders going cap in hand to Westminster. That is no way to run a country. When I became prime minister, I said that if a decision can be made closer to home, it should be.<\/p>\n
\u201cToday we\u2019re putting that into practice, shifting power out of Westminster and into the hands of the people who know their communities best.\u201d<\/p>\n
The \u00a3285m in \u201cgood growth\u201d funding is intended to tide local authorities over until a new system comes into force in 2028 whereby some income tax revenue will be handed directly to their areas to give them longer-term security \u2013 an idea first mooted by Healey\u2019s predecessor, Rachel Reeves<\/a>, earlier this year.<\/p>\n Rachel Reeves, the chancellor under Keir Starmer, first mooted the idea of a \u2018good growth\u2019 fund. Photograph: Toby Melville\/Reuters<\/p>\n More details of how this will work will be announced at the budget. Local leaders are expected to be allowed to keep some of the additional revenues created by a stronger local economy, giving them an incentive to back pro-growth policies.<\/p>\n Tax and spending in the UK is more centralised than in many other leading economies, and Burnham experienced the constraints first-hand as mayor of Greater Manchester.<\/p>\n Healey said: \u201cMayors and local leaders know what their communities need to grow, which is why we are giving them more money, more power and more capacity to get projects moving, build homes and make the right decisions for their areas.\u201d<\/p>\n The package has been drawn up in collaboration with No 10 North, which has been holding a weekly \u201csituation room\u201d meeting with local leaders, to ask them about the barriers to promoting economic growth.<\/p>\n skip past newsletter promotion<\/a>Free newsletter |Every weekday<\/p>\n Sign up to First Edition<\/p>\n Our morning email breaks down the key stories of the day, telling you what\u2019s happening and why it matters<\/p>\n after newsletter promotion<\/p>\n This resulted in an announcement this week that the Treasury has called the \u201cgreen book\u201d<\/a>, which gives guidanceon which projects taxpayers should fund. Under the new rules, projects that can be combined to boost growth \u2013 a housing and a transport scheme, for example \u2013 can be considered together.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/10\/1792887011_911_1000.jpg\")
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