Rachel Reeves has given regional leaders £13 billion of funding for local projects in her Autumn Budget.
Speaking this afternoon, the Chancellor of the Exchequer said she was "putting money and power back in the hands of local and regional leaders" by devolving £13 billion of flexible funding for seven mayors.
She said the funding would be used by the mayors to invest in "skills, business support and infrastructure".
Documents on the HM Treasury website show the seven Mayoral Strategic Authorities will receive the funding for 2026-27 to 2029-30 through their integrated settlements.
They include Greater Manchester, West Midlands, West Yorkshire, South Yorkshire, Liverpool City Region, the North Eas and the Greater London Mayoral Strategic Authorities.
"This empowers Mayors with greater funding flexibility to drive growth in their regions," the government says in its document.
Describing infrastructure as the "backbone for economic growth across of country", Reeves also said the government would back city region transport including the Midlands Rail Hub and the TransPennine Route upgrades, as well as Northern Powerhouse Rail.
Darren Mansfield, partner, commercial research at Knight Frank, said Reeves' statement "reaffirmed the government’s commitment to regional growth" through "continued investment in infrastructure and further progress on devolution".
He said: "The move towards multi-year funding settlements for some combined authorities is an important signal of greater certainty and flexibility for devolved mayors to support local priorities.
"Sustained investment in regional transport infrastructure in particular is critical to improving connectivity, supporting regeneration, and driving long-term economic growth.
Unlocking regional growth
He added: "The Budget reaffirmed the importance of major rail programmes already underway or previously announced, including Cross-Pennine rail improvements and continued investment in Midlands rail infrastructure, while longer-term proposals such as Northern Powerhouse Rail remain under development.
"Together, these investments have the potential to strengthen links between towns and cities, support labour markets, and unlock growth across regions. The priority now must be to turn these commitments into delivery."
Reeves, who was delivering her second Budget, also announced that Wales would host two AI Growth Zones, creating more than 8,000 jobs. She said this would be supported by a £10 million investment in semiconductors.
Mansfield added: "There was limited new policy detail for UK data centres in today’s Budget, but the continued commitment to innovation and national infrastructure will be welcomed across the sector.
"In recent months, ministers have confirmed four AI Growth Zones in Oxfordshire, the North East, North Wales and, most recently, South Wales. The Budget also underlined the importance of long-term, reliable energy supply in supporting future growth."
In addition to providing funding for local and regional leaders, the Chancellor also allocated investment for a number of initiatives across the UK, including £20 million for the new Peterborough Sports Quarter and £16 million for a science centre in Darlington from the Growth Mission Fund.
Reeves also said she would establish the Leeds City Fund, a long-term agreement to retain business rates to fund local regeneration projects like the development of Leeds Southbank.
Amid plans to increase defence spending, the Chancellor said the government would invest into Portsmouth, Barrow and Plymouth, as well as Derby to develop the country's "defence industry hubs" to bolster national security.
Fiscal autonomy
Stephen O'Malley, chief executive at civil engineering group Civic, said the Budget was a "significant commitment to fiscal devolution". He added: "By granting metro mayors and local leaders the ability to introduce a visitor levy and devolving £13 billion through integrated settlements, government is empowering regions to shape their own economic futures.
"This control will enable targeted investment in climate-resilient housing, nature-based infrastructure and sustainable transport links where they’re needed most.
"This isn’t just about statutory services, it’s about reducing inequalities and building future-ready places that reflect local priorities. The English Devolution and Community Empowerment Bill is a step forward, but today’s announcement shows why fiscal autonomy matters to deliver bold growth and regeneration plans at pace.
"With stronger local powers and collaborative planning, we can turn ambition into action and build investor confidence by showing what’s possible."
The government announced ahead of the Budget that England’s mayors will be able to introduce a new levy on overnight stays by visitors. The fee would apply to visitors’ overnight trips, giving UK mayors the same powers as their counterparts in cities like New York, Paris and Milan.
Councillor John Merry, Chair of Key Cities and deputy city mayor of Salford City Council, also said: "The Budget also demonstrates a commitment to empowering local leaders, granting mayors the ability to introduce tourist levies in England and providing £13 billion of flexible funding for seven mayors to invest in skills, business support and infrastructure.
"This is a first step towards the broader financial independence needed across all local authorities, including those without elected mayors, in alignment with our call for greater fiscal devolution."
