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Budget 2016: Devolution

Words: Laura Edgar

Chancellor George Osborne announced in the Budget 2016 that negotiations will open with both Edinburgh and Swansea for city deals.

He also announced mayoral devolution deals with several areas of England.

City deals


The government announced that it would open city deals with local partners on a potential city deal for Edinburgh and the south-east of Scotland.

It also plans to open negotiations with the Welsh Government and local partners on a potential deal for the Swansea Bay City Region.

Mayors for English regions


Following various deals with regions and cities including Sheffield City Region and Tees Valley Combined Authority, the government has agreed new mayoral devolution deals with English counties and southern cities too.

Agreements have been reached with:

  • West of England Combined Authority

It comprises North Somerset, Bath and North East Somerset Council, Bristol City Council, South Gloucestershire Council and the West of England Local Enterprise Partnership (LEP). The region will receive new powers over transport, planning, skills and employment and will elect a mayor. It will also receive control over a £900 million investment fund over 30 years.

  • East Anglia Combined Authority

It comprises 23 councils and LEPs, including Cambridgeshire County Council and Norfolk County Council. The combined authority will receive powers over transport, planning, skills, a £900 million investment fund over 30 years. It will also get £175 million ring-fenced funding to deliver new homes.

  • Greater Lincolnshire Combined Authority

It comprises councils and LEPs including the City of Lincoln Council. The combined authority will receive powers over transport, planning and skills. They will also manage a £450 million investment fund over 30 years.

Growth deals


Up to £1.8 million will be allocated through a round of Growth Deals with LEPs later this year, according to the Budget 2016 document.

Additionally, £2 billion of the Local Growth Fund is being allocated through the Home Building Fund.

Building Up


Following the consultation on building up in London, the government plans to consult with city regions on extending similar powers as part devolution deals.

More details about the devolution deals can be found in Budget 2016.