On Wednesday 28 October, the Chancellor of the Exchequer, John Healey, presented the Autumn Budget 2026.
Amidst a wide range of measures, the Budget 2026 confirmed that Government will devolve further spending powers to regional mayors, backed by a dedicated £1.5 billion borrowing facility to drive growth and prosperity in their regions. A £285 million “Good Growth Fund” will also enable local leaders to invest in local priorities such as transport, housing and social infrastructure, and a further £150 million will build the capacity of local and regional government to manage devolved budgets. The Budget also set out a road map for introducing greater fiscal devolution to the regions.
Hull and East Yorkshire and York and North Yorkshire are among the areas named in the first wave of new Mayoral Strategic Authority Business Rates Retention Zones. In addition, a £30 million fund will pilot local partnerships on AI adoption, starting with West Yorkshire Combined Authority, South Yorkshire Mayoral Combined Authority and York and North Yorkshire Combined Authority. The pilots will build on the experience of Barnsley as the UK’s first Tech Town.
Yorkshire Universities (YU) welcomes the Government’s investment in the UK regions, and its commitment to building the capacity of local authorities so that local leaders can deliver more for their places. It is significant that places across Yorkshire are among the first to be named in the Business Rates Retention Zones and will participate in the AI adoption pilots. The Government’s recognition of universities’ role in driving growth is also welcome, as is UKRI’s £1 billion investment in priority innovation clusters and additional funding to support university partnerships and research commercialisation.
Speaking after the Budget Statement was published, Dr Peter O’Brien, YU Executive Director, said:
“It is no surprise that devolution, local and regional development, alongside a commitment to use new and existing investment and finance mechanisms to drive growth ‘in every postcode’, featured heavily in the Budget. The Prime Minister has been clear that he wants a more agile, proactive, and decentralised, state to provide a framework for his Government’s ambitions and priorities.
“The Budget Statement identifies that devolution and a place-led approach to growth are founded on partnerships with local leaders, business and universities in which these stakeholders are empowered to set their own priorities and identify opportunities. The Government is right to recognise the need to invest in strengthening local and regional capacity and capability as new devolved powers, responsibilities, and funding are given to the regions. YU and its member institutions are part of the broad coalitions of place-based institutions in Yorkshire working collectively to improve skills and educational opportunities, and build the conditions with business and industry to create new jobs and enterprise. Therefore, a commitment to increase and improve capacity and capability in places would achieve even more impact if it encompassed both local and regional government, as well as universities and other partners in the regions.”
