'Cap in hand' no more: Burnham vows mayors will get £285m and new borrowing powers in Wednesday's Budget
From the Newshound archive · first published 25 October 2026.
John Healey is expected to raise the bank profits levy from 3% to as much as 8%, with the tax burden forecast to hit its highest level since 1948 in 2028.
Prime Minister Andy Burnham says every minister has been told to follow 'devolution by default'. Chancellor John Healey is expected to use the Budget to give strategic authorities an additional £150m as they assume their expanded responsibilities. A £1.5bn borrowing facility for mayors is being designed with them. Burnham is also promoting an overnight visitor levy on hotel stays as a way for local leaders to raise money.
Healey claims cities' potential has gone 'untapped and wasted' while Westminster held the purse strings.
The Budget is also expected to put more than £1bn into social and affordable housing.
Under Burnham's plan, some income tax revenue would go directly to devolved areas from 2028.
