North East mayor Kim McGuinness has called on the UK Government to grant her greater powers and funding to address key regional challenges, ahead of Chancellor John Healey’s Budget announcement scheduled for October 28. In a formal letter to Mr. Healey, Ms. McGuinness outlined a series of priorities including job creation for young people, expansion of youth services, affordable bus fares, and broader fiscal devolution for the North East region.
The Government has signaled that this autumn’s Budget will include measures related to fiscal devolution, aimed at giving regional leaders increased control over local tax revenues. These plans were initially announced by former Chancellor Rachel Reeves and are reportedly supported by her successor, John Healey. Ms. McGuinness is seeking to leverage this opportunity to secure more local autonomy and investment, arguing that such changes would enable the North East to deliver economic growth and improve public services.
In her letter, Ms. McGuinness emphasized the need for a world-class public transport network that is both affordable and integrated, alongside greater control over skills development and post-16 education. She stressed the importance of increased investment in apprenticeships and youth provision to ensure that all young people in the North East have access to opportunities that can help them succeed.
She further called for fiscal devolution arrangements that would allow a larger share of wealth generated in the region to be reinvested locally. The letter also outlined proposals to support housebuilding, strengthen local government finances, and fund major transport projects, notably the reopening of the Leamside rail line. Additionally, Ms. McGuinness advocated for boosting the green energy sector, raising inward investment, and establishing a £500 million North East Growth Fund to drive economic development.
Prime Minister Andy Burnham, who leads the North East administration, has acknowledged the challenges the Government faces in balancing taxation and public spending following revenue increases during previous budgets under the Labour government. He has indicated that the upcoming Budget must take into account rising borrowing costs and inflationary pressures, factors exacerbated by the economic impacts of the ongoing conflict in Iran.
Mr. Healey is expected to navigate these complexities as he sets out his first Budget, amid increased government borrowing costs and tighter fiscal constraints. Ms. McGuinness has urged him and the Prime Minister to "back the North East with the right funding and investment," emphasizing trust in regional leadership to unlock the area's full potential and foster more equitable growth.