East Midlands Mayor Claire Ward has welcomed Autumn Budget plans to give mayors a share of locally raised taxes and support a £2.5 billion aerospace programme involving Rolls-Royce.
The measures outlined by Chancellor John Healey include plans for mayors to receive 20% of business rates income from next year, with a share of income tax expected to follow from 2028.
The government also plans for all business rates raised locally to remain within local areas by the end of the decade. Business rates are charged on properties used by businesses, including shops, offices and pubs.
Ms Ward said: “The decision to give mayors a 20% share of business rates income from next year is also an important step towards greater local control and means I can prioritise funding where it matters most to residents.”
The Budget highlighted £285 million in funding for mayors and local leaders announced last week, alongside a new £1.5 billion loan facility intended to support local projects and economic growth.
The East Midlands Combined County Authority said the measures could support investment in public transport, housing and skills.
Aerospace investment forms another part of the announcements, with the government and Rolls-Royce planning a 10-year programme backed by £2.5 billion to develop aircraft engine technologies for civilian and military use.
The programme is expected to support 3,300 jobs at Rolls-Royce and partner businesses by the end of 2029. Rolls-Royce has a major base in Derby and employs people from across the East Midlands.
Ms Ward said: “This budget is one that recognises the vital contribution that the East Midlands plays in national economic growth. The £2.5 billion investment into Rolls-Royce to develop the next generation of jet engines is hugely significant.”
The Budget also highlighted the previously announced £1.2 billion contract for Alstom’s Derby Litchurch Lane site to build 29 battery-powered trains as part of the TransPennine route upgrade. The work is expected to support more than 350 jobs.
Ms Ward, who attended the Budget, also welcomed the Chancellor’s support for the proposed Trent Sports District in Nottingham.
Other measures outlined in the release include £100 million for a national apprenticeship service to match young people with employers, and an increase in small business rates thresholds from £12,000 to £18,000.
Households in properties in council tax bands A to D are also set to receive a £100 discount on energy bills.
Ms Ward said: “Taken together, these measures have the potential to support people, businesses and jobs across the East Midlands, and I look forward to ensuring that our region makes the most of the opportunities this budget brings.”
