Mayors to score wins in the budget after PM intervenes – but fears remain over councils facing bankruptcy! B
Metro mayors have joined forces to lobby for more powers and cash after years of frustration. As the chancellor Rachel Reeves prepares for the budget on Wednesday, the mayors have warned that many councils are “on the brink of bankruptcy”.
Sunday 27 October 2024 04:04, UK
Mayors are set to be one of the big winners in the budget after Sir Keir Starmer personally intervened to ensure they have more freedom to spend cash and boost growth, Sky News understands.
England’s dozen metro mayors have been working together to push the prime minister, Rachel Reeves and Angela Rayner for more powers and cash after years of frustration at the way the Treasury allocates money for projects and salaries.
But there is deep concern that Ms Reeves, the chancellor, may only allocate money to some key areas but not others.
There is agreement among all the mayors who spoke to Sky News that the squeeze on local government budgets – which metro mayors work alongside – will cause further councils to go bankrupt and hamper their ability to regenerate their local regions.
In the budget on Wednesday mayors believe they will get:
- A so-called “single pot” of money allowing them much greater freedom to allocate funds where they deem most necessary;
- Greater flexibility to raise local taxes. In Liverpool City Region, metro mayor Steve Rotherham is pushing a “tourist tax” of £1 per night on the city’s hotels to fund local tourist projects. There are hopes among some mayors they will get more flexibility in the way they can spend locally raised taxes, known as precepts;
- Multi-year budget settlements to allow for longer-term planning.
- The mayors are pushing for more powers in a range of areas from transport, where they are hopeful of some success, to skills, where they see the Department for Education reluctant to release their grip.
Sky News understands that Sir Keir has repeatedly said in meetings that he believes metro mayors, who have planning powers and work with clusters of local authorities, must be put at the heart of the push for growth across England.
‘Massively frustrating’ Treasury