This week’s Budget will begin a “devolution revolution” for the West Midlands and Manchester, with the chancellor expected to confirm “trailblazer” deals for the metro mayors.
Jeremy Hunt intends to announce this week that the two regions will be handed full control over budgets in areas such as education, transport and housing in what is being billed by government as the future of levelling up.
Under plans to treat devolved city administrations like “mini government departments”, the two regions will be freed of the need for Whitehall approval for spending in a swathe of policy areas.
Instead, the regional mayors – Andy Burnham and Andy Street – will be handed budgets of about £1bn a year each and trusted to make decisions about where to prioritise spending.
However, calls for mayors to be given tax-raising powers have been rejected.
Greater Manchester and the West Midlands are being seen as “test cases”. If the deals are seen to be a success, other city regions are likely to consider similar powers.
The Budget is also expected to unveil where a small number of new investment zones, with reduced taxes and planning regulation, will be set up.
