Mayors are set to benefit significantly from the budget after Sir Keir Starmer personally intervened to secure more flexibility in spending and boosting growth. England’s metro mayors have been advocating for more powers and funding from the Prime Minister, Rachel Reeves, and Angela Rayner to address the frustration they face in the allocation of funds by the Treasury.
In the upcoming budget, mayors are hopeful of receiving a “single pot” of money that will allow them greater freedom to allocate funds as needed. Additionally, there is a push for increased flexibility in raising local taxes, such as implementing a “tourist tax” in Liverpool. Multi-year budget settlements are also on the agenda to enable long-term planning.
The mayors are advocating for more powers across various sectors, especially in transport and skills, where they believe there is room for improvement. Sir Keir Starmer emphasized the importance of putting metro mayors at the forefront of England’s growth strategy.
Liverpool City Mayor Mr. Rotherham highlighted the Treasury’s frustrating approach to funding, calling for reforms to the evaluation criteria for major projects. He stressed the need for a fair assessment that considers the long-term benefits of projects.
Teesside Mayor Ben Houchen expressed concerns about the challenges posed by the Treasury’s narrow view and emphasized the importance of balancing infrastructure projects with day-to-day operational costs. He warned that without adequate funding for essential services, local councils could face bankruptcy, impacting service delivery.
The financial strain on councils was acknowledged by West Midlands Mayor Richard Parker, who emphasized the detrimental effects of funding cuts on vulnerable communities. He stressed the need for long-term funding plans to support local governments in planning for the future.
Parker also highlighted the importance of acquiring more powers over skills development to address the high number of low-skilled workers in the region. By investing in post-16 education, he aims to create opportunities for individuals to access better-paying jobs and attract investors to the region.
Overall, the mayors are optimistic about the budget outcomes but continue to advocate for reforms in funding allocation and increased powers to drive growth and address the challenges faced by local councils. The upcoming budget will be a crucial opportunity to support the long-term prosperity of communities across England.
