Devolution, AI and asylum accommodation: what the Budget means for Yorkshire

John Healey’s “roadmap” to fiscal devolution was touted as the most radical part of the Budget. This will see 20 per cent of business rates retained from next year, with a proportion of income tax in 2028.

This will not see mayors get any additional money at first, however it will give them greater flexibility over how they spend it. It also means they can borrow against future earnings, as they have a steady income stream, which will help major projects like the West Yorkshire mass transit and Doncaster Sheffield Airport.

£150m for asylum accommodation

The Chancellor has allocated £150m in the Budget to turn former military sites into migrant camps, which could include RAF Linton-on-Ouse in North Yorkshire.

The Government is currently attempting to close all asylum hotels and move migrants into old military bases. The former RAF Linton-on-Ouse has been identified by the Home Office as a site for this - it appears Mr Healey has put the funding in place.

A66 dualling to start next month

The Chancellor gave the green light for construction works on the A66 upgrade to officially begin next month in the Budget. Roads Minister Justin Madders wrote to North Yorkshire Council confirming the Government has approved the business case for the project.

However, while the scheme was previously expected to be delivered over five years, it will now be spread over nine years, with the entire route not expected to be fully upgraded until 2035.

Additional £200m for Leeds Station upgrade

John Healey has pumped an additional £200m into the long-awaited Leeds Station renovation, taking the total to £303m.

Leeds Station has long struggled with capacity issues, and has been the worst in the UK for delays in recent years. The funding will help add three new entrances and exits to Leeds South Bank, the site of one of the Government’s new towns. It will also create better flow of passengers, with a number of additional bridges added.

Funding for Leeds College of Building

Mr Healey also announced that £15m was going to the Leeds College of Building, to accommodate more than 2,000 additional students.

This was celebrated by the MPs which cover LCB’s two campuses. Leeds North West’s Katie White said: “This is exactly what the Prime Minister meant when he promised good growth in every postcode: investing in people, creating opportunity, and backing Leeds to succeed.”

Leeds Central and Headingley’s Alex Sobel added: “Leeds now has the opportunity to become the building capital of the UK.”

£1.5bn borrowing facility for mayors

A new £1.5bn borrowing facility will help Mayor Oliver Coppard reopen Doncaster Sheffield Airport, Mr Healey announced.

He said: “I am announcing flexible funding to invest in local economies, boosted by a further £1.5 billion of devolved loans for mayoral authorities—funds that will back projects such as … the reopening of Doncaster airport, led by the Mayor of South Yorkshire.”

Talks ongoing over mineworkers’ pensions

The Government is in talks with coalfield MPs to reach an agreement to transfer the remaining surplus from mineworkers’ pension schemes.

Rachel Reeves previously announced the billions of pounds in the Mineworkers Pension Scheme and the British Coal Staff Superannuation Scheme.

In the Budget, Mr Healey, who represents a former mining constituency, said: “I’m guaranteeing that every penny of the pension fund surplus now goes to miners.” However, PoliticsHome has reported that trustees of the scheme are not content with the process.

£20bn to Leeds-based institutions

An extra £20bn is to be supplied to the Yorkshire-based financial institutions the National Wealth Fund and the British Business Bank in a move John Healey claimed will support 140,000 jobs.

The Chancellor is providing an additional £15.4bn of capital to the Leeds-headquartered NWF, which is to increase its focus on investing in projects and companies connected to defence, alongside critical minerals and artificial intelligence and its supply chains.

Funding for Don Valley Corridor

John Healey announced that £3m is going to match funding for specialist innovation space for early-stage companies in the Don Valley Corridor, in South Yorkshire. He said this would help unleash Britain’s innovation power. Mayor Oliver Coppard said this would support his region’s “budding, burgeoning tech sector”.

AI funding

Yorkshire’s three Labour mayors lobbied hard to receive £30m in funding to pilot local partnerships in the style of the Barnsley tech town in North, West and South Yorkshire.

Tracy Brabin said: “This funding will help us shape how AI is adopted across our region, supporting good jobs, more effective public services and helping unlock the next generation of growth for West Yorkshire's thriving digital and tech sector.”