The government has announced £285mn of “Good Growth” funding for mayors and local leaders in England, with councils that are not yet part of a strategic authority also able to claim a share – a point of direct consequence for the many rural areas still outside mayoral combined authorities.
The money, confirmed on Sunday 25 October ahead of Wednesday’s Budget, is intended to let local leaders invest in their own priorities “without seeking permission from Whitehall”, according to the Ministry of Housing, Communities and Local Government. Ministers cite reviving high streets, improving transport links and building homes as possible uses. The department says it is also working with mayors on a £1.5bn borrowing facility from 2028.
Prime Minister Andy Burnham said he was “calling time on local leaders going cap in hand to Westminster”, while Chancellor John Healey said “mayors and local leaders know what their communities need to grow”, Great Yorkshire Radio reported. Housing, Communities and Local Government Secretary Angela Rayner said the change meant “real decisions made locally, backed by real money”.
Neither the department’s summary nor the initial coverage sets out how the £285mn will be divided, or makes specific reference to rural areas. The government’s stated aim is for every part of England to have, or be establishing, a strategic authority by the end of 2027.
The announcement follows a report this month from the All-Party Parliamentary Group for Rural Business and the Rural Powerhouse, which made 21 recommendations on devolution, including fairer funding and a statutory commitment to rural proofing. Its chair, John Milne MP, said that “rural areas cannot be expected to compete on a level playing field”, Inside Housing reported.
The allocation formula, expected alongside the Budget on 28 October, will determine whether county and district councils serving dispersed rural populations receive funding on terms comparable with city regions.
