London will join the areas on course to get an integrated financial settlement from the government from next year, the Spending Review announced today.
The Greater London Authority will join mayoral authorities in North East, West Yorkshire, South Yorkshire and Liverpool City Region in getting an integrated settlement from 2026‑27.
These five authorities will join Greater Manchester and the West Midlands, that received their first integrated settlements this financial year.
London mayor Sadiq Khan (Lab) said: “I’ve been determined to stand up for London and it’s good news that we have won extra resources for transport and housing. I have been campaigning for years for a multi-year deal for City Hall and for Transport for London and I welcome this agreement.”
However he said he was disappointed about a lack of commitment to infrastructure in the capital. He added: “The way to level up other regions will never be to level down London. I’ll continue to fight for the investment we need so that we can continue building a fairer, safer and greener London for everyone.”
The government also promised to provide funding for new mayoral strategic authorities through the devolution priority programme, however a figure was not provided in the Treasury document.
As part of a further promise from the government to give “local areas more control over how this money is spent”, city regions could benefit from a £15.6bn transport fund by 2031-32.
The Treasury estimates this would mean mayors of the larger cities could double the investment in their plans for zero emissions buses, trams and local rail in 2029-30 compared to 2024-25.
Local growth fund for mayors
A new local growth fund was announced for mayoral city regions in the north and the midlands, which includes a 10-year capital investment commitment from 2026-27 to 2035-36.
Documents do not say how large this fund will be.
However full details on the eligible regions to receive the local growth fund is set to be announced by the Ministry of Housing, Communities & Local Government “in due course”.
A further £1.2bn for skills per year by 2028-29 was also announced today.
This includes a promise to support 65,000 additional learners per year by 2028-29 and £625m between 2025-26 and 2028-29 to train up to 60,000 skilled construction worker.
West Midlands mayor Richard Parker (Lab) said: “I welcome investments in automotive, life sciences, digital and aerospace – and a new local growth fund for mayors. Because business and industry is vital to our region’s growth, these sectors are our strengths and we know that when the West Midlands grows, Britain grows too.”
On top of this, the government pledged to the review of the Green Book, that outlines the government’s guidance on appraisal.
Following this review, the Treasury has promised to introduce “place-based business cases” that could “make sure that central government properly assesses the complementarities between different projects, such as housing and transport”.