Chancellor John Healey promises ‘biggest wave of devolution in a decade’ and £20m for the £70m Littlewoods film and TV studios complex in his Budget announcement to the House of Commons. Tony McDonough reports

Chancellor John Healey is to unleash the full power of devolution giving more powers and more cash to Liverpool city region’s Steve Rotheram and other metro mayors.

And Mr Healey offered a major £20m boost to Liverpool’s Littlewoods film and TV studios complex which may get the stalled project moving again. It is located around the former Littlewoods art deco headquarters in Edge Lane.

In January 2026 Liverpool city region Mayor Steve Rotheram, who has already committed £17m of public cash to the project, insisted he was “desperate” to get the development, being managed by Manchester developer Capital&Centric (C&C), off the ground.

He lobbied Whitehall and that persistence appears to have paid off. Now the scheme, which has seen more twists and turns than a movie plot over the decade since it was first announced, may finally get moving.

This funding, through the Government’s Growth Mission Fund, marks a major milestone in plans to transform the landmark Littlewoods building into a nationally significant centre for film, TV, gaming, immersive technology and digital industries.

Subject to final business case approval, the investment will help unlock plans for a 260,000 sq ft development bringing together production studios, innovation space, education facilities and support services into a single creative campus.

It unlocks the next phase of the project with work planned to start on site from Spring 2027 to install infrastructure and carry out initial works on the existing building.

The vision is for the Liverpool Creative Campus to become a powerhouse for creative production and technology, supporting around 630 permanent jobs and generating an estimated £56m a year for the economy when fully operational.

Liverpool City Council leader Liam Robinson said: “This is a huge moment for Liverpool and the region and a major vote of confidence in the city’s future.

“For generations, the Littlewoods site was synonymous with jobs, opportunity and enterprise. We now have the chance to write a new chapter in that story and create a destination that brings together creativity, technology, innovation, skills and business growth.”

“Most importantly, this is about creating opportunities for people. We want local residents to benefit from the jobs, careers, training and businesses that can grow from this investment.”

Tim Heatley, co-founder of Capital&Centric, added: “Every Budget promises new infrastructure. But not many budgets back the buildings we already have and have let rot.

“Littlewoods is the perfect example. It’s a kilometre of art deco that sat unused for decades. With the help of the Government’s investment, it will become over 275,000 sq ft of studios, work space and public space, with the potential to bring around 4,000 jobs to the region’s creative sector.

“Liverpool hosted 301 productions in 2023. Give the industry proper studio space and that number will only increase. The North can compete with anywhere, without every big production having to start in the South East.”

On devolution, Mr Healey said: “For the first time I’m making the commitment that 100% of business rates will be retained locally by the end of the decade, so if local leaders help businesses start and grow, more of the rates they pay stay in that area.

“From next year, 20% of business rates revenue will go to mayors, And from 2028, a share of income tax receipts will go to mayors as well. Also from 2028, mayors and other strategic authorities will have new powers to introduce an overnight visitor levy.

“Taken together, these are long-term funding streams they can use to back investment into big local infrastructure, so that more of the money that is raised locally, can be spent locally.”

Liverpool city region Mayor Steve Rotheram said: “giving Mayors a greater say over the money raised in our own regions, backing British industry and investing in council housebuilding is exactly the sort of change we’ve been calling for.

“These are practical decisions that will help places such as Liverpool city region grow our economy, create better jobs and give families greater financial security.”