News story

Budget 2026 Fact Sheet: Delivering for Every Region

A factsheet on local and regional growth measures in England.

• From: HM Treasury
• Published: 28 October 2026

This Budget sets out a comprehensive package of local and regional growth measures, putting local leaders in the driving seat of good growth in every postcode. This Budget does this by: i) empowering places through devolution; ii) backing local strengths in cities and towns across the country to drive reindustrialisation; and iii) unlocking the potential of cities and growth corridors to spread opportunity to surrounding areas.

A toolkit of devolved powers and support for the whole of England:

• Continuing work with all remaining areas to find local consensus to agree a Strategic Authority as soon as possible, with the aim of achieving full devolution coverage by the end of 2028, led by MHCLG and No.10 North. Today’s announcement will mean that over 90% of England’s population is covered by devolution, covering the whole of the North for the first time. This means more power over things like buses, housing and skills moving out of Whitehall and into the regions.
• Delivering a major increase in local authorities’ flexible revenue streams by making business rates a fully locally retained tax by the end of the decade, with mayors receiving 20% from April 2027 and local authorities’ share increasing to at least 70% in the coming years. This will give local and strategic authorities greater long-term certainty and an opportunity to share in the proceeds of growth.
• Supporting local authorities to tackle avoidance in the business rates system so more money can be kept locally, with a commitment to introduce a General Anti-Avoidance Rule as soon as possible and provide greater support for local authorities to challenge business rates avoidance through the legal system by covering their external legal costs.
• Providing an additional £1.5 billion to deliver 10,000 homes across England, with funding prioritised for Social Rent, especially council homes. This takes the total investment in the Social and Affordable Homes Programme to more than £40 billion over 10 years. Also maintaining the preferential borrowing rates for council house building through the Public Works Loan Board for a further year.
• Reducing administrative burdens on local authorities through a commitment to reduce the number of grants at the Spending Review, streamline reporting requirements and empower local authorities to take decisions on behalf of their communities.
• Providing £125 million to support 60 English local authorities to transform buildings into what their communities need, from health centres to civic spaces, through the new Derelict Buildings Fund, and supporting local authorities to revitalise their high streets through the High Streets Strategy.
• Delivering £80 million of new funding for the Local Renewal Fund to support local projects across the UK, including in non-mayoral areas, creating jobs, investing in local economic regeneration, maintaining heritage assets and backing local initiatives that boost economic growth.
• To help households with the rising cost of energy, the government will provide a £100 Household Energy Payment for households in council tax bands A to D from January 2027, giving up to 20 million households in England some breathing space from rising energy prices. The Government is also providing £100 million for local authorities in England to provide additional support to households most acutely impacted by rising energy bills.
• We will continue to work with regional and local government to explore how greater local control of business rates policy could support local growth and resilience, while protecting business certainty, local government funding and fairness between places.

Empowering strategic authorities in England by:

• Publishing the Fiscal Devolution Roadmap, outlining a new funding model for regional and local government. This includes income tax assignment for all mayors beginning in 2028; increased business rates retention, with mayors retaining a share of locally retained business rates from next year and the share retained by local authorities increasing; and plans to legislate for all Strategic Authorities to have the power to introduce an Overnight Visitor Levy.
• Taking forward the first wave of new Mayoral Strategic Authority Business Rates Retention Zones with nine authorities, subject to Full Business Case approval and legislation. This will unlock commercial development, support the delivery of Mayors’ Local Growth Plans and projects in areas such as Stratford, Derby and Selby, and enable more tax to be spent where it’s raised.
• Confirming £165 million in 2027-28 to support places with a mayor in 2027 to roll out Good Growth Funds – extending funding to areas that did not receive the City Densification Fund announced earlier in the year. The government is also confirming a bespoke borrowing facility of £1.5 billion for MSAs, which will be operational by 2028.
• Providing an £150 million uplift to capacity and capability funding directly to Strategic Authorities in 27/28. This will support local leaders to begin building the resource and expertise required to manage greater powers, fiscal devolution and Good Growth Funds. The government will undertake a fuller assessment of Strategic Authority capacity and capability to inform funding baselines at SR27.
• Supporting all existing Mayoral Strategic Authorities through No10 North’s Priority Projects Programme, with £28 million of new funding towards projects in: Don Valley, Bristol Temple Quarter, and Leeds South Bank to catalyse delivery and unlock private investment.

Empowering areas as they become strategic authorities:

• Confirming that the government is in the final stages of agreeing 10 new devolution arrangements, which will mean that over 90% of England’s population will have a devolution agreement, covering the whole of the North for the first time. This means more power over  things like buses, housing and skills moving out of Whitehall and into the regions.

• Allocating a £120 million share of Good Growth Fund incubator capital funding for areas transitioning towards a devolution deal or Strategic Authority Status to unlock projects that contribute towards growth in their areas.
• Extending the No10 North Priority Projects Programme to areas that have signed up to a new devolution deal and those electing mayors for first time in 2027 and 2028, helping them identify the projects that matter most to their economies and coordinate government support to drive delivery including through the Prime Minister’s Situation Room. This will include support to develop strong business cases where required.
• Outlining plans to provide an opportunity for Foundational Strategic Authorities and local authorities to put forward Business Rates Retention Zone proposals as they work through the process of establishing Strategic Authorities.