Liverpool City Region to have more funding control after major government announcement

Metro Mayor Steve Rotheram said the move "cements our place as one of the leading regions in the UK"

The Liverpool City Region will have more control over its funding after an announcement in the budget. On Wednesday, Chancellor Rachel Reeves delivered the Labour government's first budget as she told the House of Commons the government would “invest, invest, invest” but added the “black hole” left by the Conservatives requires tens of billions of additional taxes.

Ms Reeves said her budget will increase taxes by £40bn, but there will be no rise to income tax, VAT or employee National Insurance payments. She confirmed plans to hike employers’ National Insurance contributions and increase capital gains tax, while also making changes to inheritance tax and stamp duty.

Locally, the Chancellor confirmed Treasury approval of £56m funding for the Central Docks housing development in Liverpool city centre and the budget revealed the controversial A5036 Port of Liverpool Access Road dual carriageway in Sefton would not go ahead. Additionally, Ms Reeves stated that the Liverpool City Region is one of six devolved authorities to benefit from integrated settlements.

Starting in the West Midlands and Greater Manchester in 2025-26, the settlements will mean that local combined authorities will each be given a single pot of funding to deliver their projects, rather than having to bid for money to deliver each project. The Liverpool City Region will receive its settlement from the start of the 2026-27 financial year.

The budget said: "On devolution, the government is working closely with local leaders on the upcoming English Devolution White Paper, and the Budget introduces the first integrated settlements for the West Midlands and Greater Manchester from 2025-26. The integrated settlements will deliver a single flexible pot of funding with a single outcomes framework to support MCAs (Mayoral County Combined Authorities) to deliver growth.

"The government wants more regions to benefit from integrated settlements and is confirming the MCAs that are eligible to receive integrated settlements from 2026-27: the North East, South Yorkshire, West Yorkshire Mayoral Combined Authorities, and Liverpool City Region Combined Authority. The government will also explore how an integrated settlement could apply to the Greater London Authority from 2026-27."

About the settlement, Metro Mayor Steve Rotheram said on Wednesday: "Today’s confirmation that we will be next to receive an integrated settlement demonstrates the difference that we have made to date and cements our place as one of the leading regions in the UK. But, more importantly, this single, locally controlled funding pot is an important step in graduating from decentralisation to true devolution.

“It reinforces what we’ve long known in the Liverpool City Region: devolution works. Locally, we’re leading the way – from the UK’s first publicly owned train fleet, publicly-led digital connectivity and establishing ourselves as Britain’s renewable energy coast.

"Today’s announcement will help us take that work to the next level. At long last, it is nice to finally have a government that recognises the powerful, positive impact of letting regions take charge of our own destiny."