The UK government has confirmed a long-term investment package of almost £6 billion, to be distributed over three decades, for six new devolved regions set to establish mayoral authorities.
This funding is designed to empower local leaders to accelerate housebuilding, regenerate high streets, and support business growth, creating a significant and sustained pipeline of opportunities for the construction sector in these areas. The annual funding allocation will amount to nearly £200 million, shared between the designated regions, providing the capital for new development projects.
The six areas, part of the government’s Devolution Priority Programme, will receive specific annual investment funds for the next 30 years. The allocation is as follows: Hampshire and the Solent Combined County Authority will receive £44.6 million; Greater Essex Combined County Authority is allocated £41.5 million; Sussex and Brighton Combined County Authority will get £38 million; Norfolk and Suffolk Combined County Authority is set for £37.4 million; Cheshire and Warrington Combined Authority will receive £21.7 million; and Cumbria Combined Authority is allocated £11.1 million per year. This predictable, long-term funding stream offers contractors and suppliers a clear view of future public sector investment, enabling strategic business planning.
Once established, the new mayors will have the flexibility to direct these funds towards local priorities, with a strong emphasis on increasing the housing supply and delivering social and affordable homes. The funding is a key component of the government’s ambition to build 1.5 million new homes. For the supply chain, this translates into direct opportunities in residential construction, as well as associated infrastructure works. The devolved powers accompanying the funding, particularly in transport and planning, will grant mayors greater control over land use and strategic development, which is expected to unblock and fast-track regional building programmes.
The implementation timeline for these new mayoral authorities is staggered. Cheshire and Warrington and Cumbria, which already have unitary councils in place, are scheduled to hold their first mayoral elections in May 2027. The remaining four areas—Greater Essex, Hampshire and the Solent, Norfolk and Suffolk, and Sussex and Brighton—are currently undergoing local council reorganisation. To ensure a stable foundation for the new mayors, the government is considering holding their inaugural elections in May 2028. This phased approach provides the construction industry with a clear roadmap of when new devolved spending and planning powers will become active across these key English regions.
