Healey's First Budget to Include Major Devolution Package

Chancellor John Healey's first Budget is expected to include a significant devolution package aimed at boosting regional economic growth, with Prime Minister Andy Burnham promising an end to local leaders going 'cap in hand to Westminster' Source: The Guardian. The Budget, while not a small event, is constrained by the country's well-documented economic problems, and is not expected to solve all issues at once Source: BBC.

Key measures

The Budget will include a new £1.5bn borrowing facility for local leaders, to be developed over two years, and an initial £285m 'good growth' fund for local priorities like housing and transport Source: The Guardian. An additional £150m will support local authorities in scaling up their capacity Source: The Guardian. The package is designed to shift power out of Westminster, with a new system from 2028 allowing areas to retain some income tax revenue Source: The Guardian.

Political context

Beyond devolution, the Budget is expected to include extra taxes on banks, business regulation changes, and action on energy bills Source: BBC. However, one former minister noted the government cannot fix everything simultaneously due to economic constraints, questioning whether investment will go toward growth, winter challenges, or defence Source: BBC. Despite these challenges, the Labour Party mood is reportedly positive, with ministers being more approachable and visible in Parliament Source: BBC.