Cash also announced for regeneration schemes across the UK
Chancellor Rachel Reeves today announced the devolution of £13bn in flexible funding for seven mayors across England to “invest in skills, business support and infrastructure” in this year’s Budget.
According to the Spending Review 2025 (SR25) document, the cash will be distributed via integrated settlements from 2026-27 to 2029-30 for the mayoral strategic authorities of Greater Manchester, West Midlands, Liverpool City Region, West Yorkshire, North East, South Yorkshire and the Greater London Authority.
The funding model, which funnels various government grants into a single pot, aims to empower regional leaders with control over public services priorities aligned with their local growth plans. This could include investment in transport and housing.
The government said it will roll out integrated settlements to more places at the next spending review.
Conor Leyden, managing director of ground investigation and environmental consultancy, LK Group, welcomed the devolved funding, but said the commitment “must now be matched by practical planning reform and environmental clarity, otherwise shovel-ready projects risk staying on the shelf.”
He added: “When decisions are made locally, regeneration succeeds. With the right mix of funding certainty, planning agility, and environmental guidance, regeneration can unlock jobs, homes, and long-term growth in every region. What we need now is consistency — not another cycle of stop-start policy and uncertainty.”
Reeves also announced the creation of the Leeds City Fund, which will allow the council to retain 100% of business rates growth above an agreed baseline for 25 years within a designated zone in the city centre.
In her parliamentary address, she said: “I’m establishing the Leeds City Fund, a long term agreement to retain business rates to fund local regeneration projects like the development of Leeds South Bank.
“And I’m allocating £20m for the new Peterborough sports quarter and £16m for a science centre in Darlington from the Growth Mission Fund.”
Leeds South Bank has been identified as a site for a potential new town with the capacity for 13,000 new homes.
The government said it will work with mayoral strategic authorities over the coming months to improve the business rates retention system and co-develop an offer that allows them to access a direct share of business rates from across their region.
Meanwhile, the Growth Mission Fund will provide £20m for Peterborough’s new sports quarter, which would form part of the Anglia Ruskin University campus and reintroduce a swimming pool in a city that was left without one after a forced closure in September 2023.
It will also support the construction of a STEM centre in Darlington and is expected to contribute funding for the regeneration of Kirkcaldy town centre and seafront in Fife, Scotland once plans have been developed.
A further £378m has been confirmed for a new local growth programme over three years to support regeneration across Scotland, Wales and Northern Ireland.
No comments yet