Combined Authorities: Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, which funding streams are available to Mayoral Combined Authorities which are not available to areas without MCAs, and how much is being spent per year through each of these funding streams.
Answered by Nesil Caliskan
MHCLG provides various funding streams exclusively to Mayoral Strategic Authorities (MSA), including:
- Mayoral Capacity Fund (MCF): the Department allocated approximately £44 million to MSAs in 2026-27 through MCF. Approximately £3 million of this funding is subject to local consent to establish MSAs in Greater Essex and Norfolk and Suffolk. Further information on allocations for the Spending Review period is available here.
- Investment Funds: MHCLG has allocated approximately £522 million to MSAs in 2026-27 through Investment Funds. Approximately £32 million of this funding is subject to local consent to establish MSAs in Greater Essex and Norfolk and Suffolk.
- Integrated Settlements (IS): MHCLG has allocated approximately £3.6 billion to MSAs through the IS in 2026-27, rising to £4.3 billion in 2028-29. Some of the funds consolidated within the IS are also provided to non-MSA areas. Further information is available here.
- Local Growth Fund (LGF): MHCLG has allocated £202 million to MSAs through the Local Growth Fund in 2026-27, rising to £262 million in 2028-29. For areas with an Integrated Settlement, this funding is delivered via the Integrated Settlement. Further information is available here.
- Mayoral Revolving Growth Fund (MRGF): MHCLG will also provide £500 million to MSAs through the MRGF. Further information is available here.
To understand the funding given to MSAs more fully, information is outlined in each MSA annual report. Other government departments will hold the information on funding they provide.
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