Call for mayors to be given new powers to fund public infrastructure

The report calls for the introduction of 'Mayoral Infrastructure Investment Partnerships', a new model of progressive public-private partnership that mayors can use to build the infrastructure they need in their regions.

The FGF has urged the Chancellor of the Exchequer, John Healey, to use the upcoming Budget to allow mayors to use this model, with support from the Treasury and No10 North.

The report also calls on the Chancellor to use the 2027 Comprehensive Spending Review to give mayors the funding required to get these projects off the ground, with no extra cost to the taxpayer, by recycling the money freed up as old Private Finance Initiative (PFI) contracts expire.

According to FGF, this would see £500 million devolved to Mayoral Strategic Authorities to fund public infrastructure by 2032-33, rising to £1.7 billion by 2037-38.

Adam Terry, FGF Executive Director, said, "Britain's hospitals and schools are crumbling and it would cost nearly £16bn in the NHS alone just to bring it back up to a functioning standard, let alone to meet our future infrastructure needs.

"Mayoral Infrastructure Investment Partnerships would enable the public and private sectors to work together to build infrastructure at pace, and deliver progressive outcomes in terms of jobs, skills and community benefits.

“The Chancellor is right to identify investment and place as two major drivers for getting our country growing again and bringing back hope. In his Budget he can address both by giving Mayors the powers they need to get building again in their regions." 

Amardeep Gill, Partner and Head of Public Sector, Trowers & Hamlins, said, "This report makes a compelling case for giving mayors the tools, flexibility and accountability to unlock investment that can transform communities. By bringing together public ambition and private sector expertise, it highlights how a new generation of partnerships can deliver not just vital infrastructure, but wider regeneration, skills and long-term economic growth.

“At a time when public resources are under pressure, this is a practical and forward looking blueprint for delivering meaningful change across the UK."