UK budget set to hand English mayors new borrowing powers, growth funding

UK Budget Empowers English Mayors With New Borrowing, Growth Funding

Overview of New Funding and Powers for English Mayors

MANCHESTER, England, Oct 24 (Reuters) - British finance minister John Healey will use next week's budget to hand mayors in England new funding and powers, including a £1.5 billion ($2 billion) borrowing facility, as part of plans to move economic decision-making out of Westminster.

Details of the Good Growth Scheme

The measures include £285 million of seed funding next year under a new "Good Growth" scheme, which the finance ministry said would let local leaders invest in their own growth priorities without seeking permission from central government.

Prime Minister's Statement

"I'm calling time on local leaders going cap in hand to Westminster. That is no way to run a country," said Prime Minister Andy Burnham.

Key Points of the Budget Measures

Good Growth Funding Objectives

• The Good Growth funding is designed to reduce local leaders' reliance on fragmented bidding pots from central government

Potential Uses of the Funds

• The funds can be used for housing, regenerating high streets and improving transport links

Borrowing Facility for Local Growth Projects

• The government will work with mayors to design the £1.5 billion borrowing facility, which it said would give them access to capital to back local growth projects

Support for Strategic Authorities

• Strategic authorities will receive a further £150 million next year to build up staff and expertise as they take on bigger budgets

Exchange Rate Information

($1 = 0.7478 pounds)

Reporting Credits

(Reporting by Andy Bruce; editing by Suban Abdulla)