Metro Mayor Steve Rotheram is just weeks away from taking much greater control over how more than £2bn of public money will be spent in Liverpool city region in the next few years. Tony McDonough reports
In April Liverpool city region will be among the first wave of devolved regions to take greater control of how they spend their multi-billion pound budgets.
Metro Mayor Steve Rotheram has secured what is called an Integrated Settlement totalling more than £1.5bn for the next four years. And he has been freed from some of the Whitehall shackles when it comes to how that money is spent.
Since Mr Rotheram was first elected as city region Metro Mayor in 2017 his spending has been strictly controlled by the Government with each major spending commitment having to be greenly by Whitehall officials.
Under the Integrated Settlement, Westminster will offer the Mayor and the Combined Authority much more flexibility on how its budget is spent. For example he can transfer money from revenue budgets (day to day spending) into capital spending and vice-versa.
It also offers more freedom on what the money can be spent on, based on the idea that local leaders are better placed to decide what are the priorities.
While the settlement does not represent additional funding, it offers increased flexibility, longer-term certainty and local control for Mayor Rotheram and his cabinet over investment decisions.
Mr Rotheram said: “It marks a major milestone for devolution in Liverpool city region as we move to an Integrated Settlement – a clear vote of confidence from national Government in our ability to deliver for local people.”
This Integrated Settlement covers revenues spending of £417m for a three-year period from 2026/27 and capital spending for four-year period from the same starting point totalling £1.1bn.
In 2025 Mr Rotheram announced he had secured £1.6bn from the Transport for City Regions (TCR) fund that covers a seven year period from 2025/26. There is some overlap between that funding and the Integrated Settlement.
So £30m of TCR revenues spending and £750m of TCR capital spending will contribute to the £1.6bn TCR total. That still adds up to total spending across all areas of well in excess of £2bn.
Last year the Mayor offered some details of how the transport budget will be spent over the next few years. Biggest projects will be three new Merseyrail stations and a new rapid transport system linking Liverpool John Lennon Airport and the two football stadiums.
Schemes to make thousands of homes more energy efficient will also be funded and the Mayor’s Community Environment Fund, which has helped more than 100 grassroots green projects, will be supported for a fifth year running.
More than £668,000 has been earmarked for cultural projects and its six constituent local authorities will receive £1.6m for each of the six councils to pursue regeneration and growth priorities.
The budget includes an extension to the £2 bus fare cap and funding to take back control of the city region’s bus network. The budget also earmarks £52m to fund the City Region’s concessionary travel scheme for people aged 60 and above.
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More than £60m will be allocated to fund training for adults. Funding from Government will continue for the Freeport and Innovation Zone programmes. £1m will also go support AI innovation in the city region.
“This budget is firmly focused on moving our region forward – expanding opportunity, raising aspirations and improving everyday life for the 1.6m people who call this place home,” added Mr Rotheram.
“By committing more than £60 million to adult skills and training, we are helping tens of thousands of people access secure, well-paid work and long-term prospects.
“This is what devolution is designed to deliver: decisions taken locally, shaped by local priorities, and creating real benefits on the ground.”