City-region poised to take greater control over finances

Greater Manchester is set to become the first UK city-region, alongside the West Midlands, to be allocated an integrated settlement from Government that will give the city-region greater powers over its finances and local spending.

The settlement is part of Greater Manchester’s trailblazer devolution deal and will give the city-region greater flexibility over a £630 million budget in areas including adult skills, housing, transport, and local growth. The model, similar to how funding is spent by devolved governments in Scotland and Wales, brings multiple funding streams together into a single pot with decisions over how it is invested decided by local leaders without the need for approval from London-based government departments.

Greater Manchester Combined Authority (GMCA), alongside the 10 borough councils and community sector partners, are working closely together to ensure investment in local services in the city-region is fair, efficient and effecting at meeting the city-region’s 10-year plan.

In an email update on GMCA activities in March, Caroline Simpson, GMCA Chief Executive, said:

“Government is collaborating with us to agree on the broad delivery outcomes of the funding, meaning we will be able to move funding between policy areas with more flexibility allowing for more joined-up delivery.

“We have already proven that through our collaborative approach we can pioneer innovative solutions to our regional ambitions, such as being the first area outside of London to bring buses back under local control. The integrated settlement will make it easier for us to drive this innovation by providing more autonomy over how funds related to key thematic areas such as transport and adult skills are allocated.

“We will continue seeking the Government’s support throughout this journey because with the right investment infrastructure in place, we can ensure that the model we’re delivering here can become a blueprint for the next phase of English devolution.“

Ahead of taking on the new powers that come with the Integrated Settlement, independent Government advisers undertook a ‘readiness check’ on GMCA’s preparedness to deliver this significant consolidated budget between November 2024 and March 2025. A final report confirmed to GMCA at the end of March 2025, that the city-region meets or exceeds expectations in all four key areas covered: four key areas: reporting and evaluation; strategy, planning and governance; people and capability; and financial and performance management.