Will the budget deliver ‘growth in every postcode’?

Will the budget deliver ‘growth in every postcode’? The chancellor outlined ‘the biggest wave of devolution in a generation’ – but large swathes of the country are excluded

In just two years, there could be dozens of mayors preparing to spend billions of pounds as part of Andy Burnham’s mission to devolve greater powers across England.

Fresh devolution deals could also be in place following negotiations with leaders in Scotland, Wales and possibly Northern Ireland, allowing the prime minister to say at the next election that he has fulfilled a promise to rewire Britain’s political landscape with a view to giving more local control.

This was the message from John Healey’s first budget , which outlined the direction of travel and put in some milestones, including a 2028 commitment to devolve some income tax receipts to mayors of strategic authorities (MSAs). He added the commitment that next year, 20% of business rates revenues will go to mayors.

He told MPs that he was offering mayors 100% of their business rates income by the end of the decade and the ability to tax visitors who stay in hotels and B&Bs in their aream, via a new overnight visitors levy.

It would mean, Healey said: “New powers to the people who know their areas best, not sentimentality but supply-side economics. The biggest wave of devolution in a generation, driving good growth in every postcode delivered to the British people by this Labour government.”

However, Burnham’s signature phrase that he will bring “good growth in every postcode and hope in every heart” will face scrutiny once it becomes clear large parts of the country are excluded.

Manchester, the West Midlands and Liverpool City region head a list of 14 areas already governed by a mayor.

Healey said the 14 were on course to get enhanced deals, while ministers were in the final stages of signing 10 more agreements, creating MSAs for Devon, Plymouth and Torbay; Hertfordshire; Lancashire; Leicester, Leicestershire and Rutland; Stoke and Staffordshire; Surrey; Thames Valley (Oxfordshire, Berkshire and Swindon); and Wessex.

Last month, Essex county council leaders agreed to adopt an MSA to secure about £1.2bn of funding over 10 years. Cornwall’s leaders, who secured a special devo deal under the previous Tory government, were at No 10 North last week – the hub of devolution discussions – hammering out an enhanced set of powers matched by extra money.

Yet there is concern that while these areas might come on board before next year, many others will be left out.