• Swindon & Wiltshire Economy
• Monday October 26 2026

South West leaders handed £285m to end ‘cap in hand’ begging to Westminster

South West leaders are set to gain far greater control over local investment under Government plans to end the era of communities “going cap in hand to Westminster”.

Chancellor John Healey will use Wednesday’s Budget to pledge £285m of transitional seed funding for mayors and local leaders across England from next year, including the West of England Combined Authority.

The money is designed to let regional leaders invest in locally identified growth priorities without seeking approval from Whitehall.

The Government says the move will replace fragmented bidding pots held in Whitehall with more flexible funding, giving mayors the authority to back projects such as new homes, high street regeneration and improved transport links.

West of England Mayor Helen Godwin said the changes would deliver “more jobs for local people and more economic growth for businesses across our region”.

“Devolution will put our future into our hands,” she said. “Our share of the almost £2 billion announced for mayors and regions for the coming years can help drive good growth in every postcode in the West.”

The Chancellor said the South West’s potential had “gone untapped and wasted” while money and power remained in Westminster.

“Mayors and local leaders know what their communities need to grow, which is why we are giving them more money, more power and more capacity to get projects moving, build homes and make the right decisions for their areas,” Healey said.

The £285m package will be allocated next year to support mayors and local leaders while the Government transitions to a new funding model. Areas that are not yet strategic authorities will also be able to access a share of the cash to unlock growth projects during the transitional period.

Ministers will also confirm plans for a new £1.5bn borrowing facility for mayors from 2028, intended to give strategic authorities access to long-term capital for local investment priorities.

In addition, Strategic Authorities will receive £150m next year to strengthen their capacity and capability as they take on expanded powers and larger budgets.

The funding is intended to help mayoral bodies build the expertise needed to manage more complex investment programmes and deliver devolved responsibilities.

The Government says the reforms mark a shift away from centralised decision-making, with communities given greater autonomy to determine their own economic future.