Burnham vows mayors will no longer go 'cap in hand' to Westminster under a £1.5bn borrowing plan in Wednesday's budget

Chancellor John Healey will also give mayors an initial £285m in 'good growth' funding next year, replacing the previous model of competing for separate Whitehall pots. The money can be spent on housing, transport links or high street regeneration. With the Treasury concerned that some councils lack the capacity to manage larger budgets, a further £150m will help strategic authorities build that expertise. The borrowing facility itself will not come into effect until 2028.

Healey argues that regional potential has gone 'untapped and wasted' while Westminster held onto money and power.

Areas without strategic authority status will still receive a share of the funding during a 'transitional period'.

Burnham on the old system of seeking Treasury approval project by project: 'That is no way to run a country.'