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Local government

Devolution of Government Funding in England: A Brief Overview

Strategic Insights

— 1 min read

The UK Parliament has issued a written answer, detailing how government funding streams in England are devolved to Mayoral Combined Authorities (MCAs) and Combined County Authorities (CCAs). The majority of funding is devolved to areas where MC(C)As are in place, with national government overseeing these funds in areas without a Combined Authority. Several funding streams, such as Investment Funds and City Region Sustainable Transport Settlements, are exclusively targeted at MC(C)As in England.

Key Takeaways:

  • Most government funding streams in England are devolved to MC(C)As, with national government overseeing funds in areas without a Combined Authority.
  • Investment Funds, agreed through Devolution Deals, support multiple themes including transport, infrastructure, skills, culture, and enterprise & innovation within MC(C)As.
  • City Region Sustainable Transport Settlements are available to 8 MCAs from 2022-2027, while 9 of the current 13 MCAs are eligible for its successor, the Transport for City Regions fund, from 2027-2032.
  • The Department for Transport provides grants to a subset of Mayoral Combined Authorities for transport network support.
  • The government has not commissioned analysis on the impacts of devolved funding on areas without devolution agreements in England.
  • Examples of funding recipients include Investment Funds and City Region Sustainable Transport Settlements.
  • The answer highlights the importance of devolution agreements in accessing exclusive funding streams in England.

Statistics:

  • 8 MCAs are eligible for City Region Sustainable Transport Settlements from 2022-2027.
  • 9 of the current 13 MCAs are eligible for the Transport for City Regions fund from 2027-2032.
  • Investment Funds support multiple themes, including transport, infrastructure, skills, culture, and enterprise & innovation within MC(C)As.
  • The government has not commissioned analysis on devolved funding impacts.

Sources:

  • The UK Parliament, London, written answer by Jim McMahon Labour Oldham West, Chadderton and Royton Commons, answered on 4 July 2025

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