Spending Review and Autumn Statement

Chancellor George Osborn

The Chancellor George Osborne used his Spending Review and Autumn Statement today to set out how he will deliver "economic security, national security and opportunity for families" across North West.

Announcing £200m to back Transport for the North, further devolution to Greater Manchester and support for museums and the arts, the Chancellor set out the role the North West is playing in building the Northern Powerhouse.

The Chancellor said: “My Spending Review today puts security first. It delivers economic security so Britain lives within its means, financial security for families, and national security for all.”

“At the centre of our plans to help working people at every stage of their lives are further investments in schools for our children; a world-class National Health Service; new protections for police and defence budgets and the biggest rise in state pensions since 2001.”

“The North West is vital to the success of the Northern Powerhouse and that’s why today I have confirmed major investments there in areas like transport, trade and culture as well as devolving even more powers to local leaders. This is a Spending Review which delivers for the people of the North West.”

The Spending Review also announced significant new powers for local councils, including the power to introduce a social care precept to fund vital services and enabling councils to invest all of the cash they make from selling assets to support local services. 

As a result of decisions made at the Spending Review, the Government is projected to spend at least the following over the next five years.

• £150 billion on health in the Northern Powerhouse 
• £45 billion on schools in the Northern Powerhouse 
• £13 billion on transport in the Northern Powerhouse 

Specific to the region, the Chancellor also announced: 

• £200m for Transport for the North, including £150m to make smart and integrated ticketing a reality and £50m over the Parliament to fund the operation of TfN and further accelerate progress towards transforming the North’s transport connections
• Other transport commitments include investing in major rail projects like the northern hub and the investments we have made in key road projects like the £26.4m 1.1km dual carriageway link road to the east of Crewe, opening up a key development area and acting as bypass and the £210m road investment from Junction 8 on the M60 to Junction 20 
• The North West could also benefit from a brand new £475m Local Majors Fund, which will allow local areas to bid for funding for large local transport projects that are too expensive to pay for by themselves 
• Confirmation that the winning bidders of the Northern and TransPennine Express franchises, which will deliver 120 new train carriages, will be confirmed in December and commitment to deliver new cycle infrastructure in Manchester for seven new routes totalling 56 kilometres 
• £167m on 154 flood defence schemes in the North West by 2021 better protecting around 26,000 households
• Following the historic devolution settlement with the Liverpool City Region last week, the government is giving even more devolved powers to Greater Manchester including new powers to raise money to invest in infrastructure, and supporting its Combined Authority to develop and implement an integrated approach to preventative services for children
• Funding to support a new air route from Carlisle to Belfast, Dublin and Southend
• New Enterprise Zones in Carlisle, Greater Manchester Life Sciences Park, Lancashire Hillhouse and the Cheshire Science Corridor
• Almost 90,000 small businesses in the North West will also benefit from lower business rates, saving an average of £945 with the extension of the small business rate relief until April 2017
• The government has agreed with the British Business Bank and LEPs in the North West, Yorkshire and Northern Lincolnshire and Tees Valley to create a Northern Powerhouse Investment Fund of over £400 million to invest in smaller businesses, subject to European funding arrangements. Together with a separate fund in the North East this will make over £500m available across the Northern Powerhouse
• £22m for northern businesses to attract global investment through trade missions following the success of recent Northern Powerhouse trade missions to China and South East Asia
• Launch of the national £400m Grand Challenges Fund, which will support regional bids for significant science projects
• Launch of a National College for Onshore Oil and Gas in Blackpool
• £250m for small modular reactor development and wider nuclear research, creating opportunities for the North’s centres of nuclear excellence 
• An initial investment of £4m to establish an Anti-Microbial Resistance of Excellence at Alderley Park, subject to a business case
• Launch of Health North thanks to a £20m investment which will deliver better care outcomes for the whole region - Manchester is a pilot city for the Connected Health Cities initiative as part of this project
• £5m to expand the Great Exhibition in the North to coincide with the Liverpool Festival of Business and £15m for a Great Exhibition Legacy Fund to boost culture across the Northern Powerhouse, to be taken forward by Sir Gary Verity
• £5 million for a new South Asia Gallery at Manchester Museum 
• Backing to bring the Rugby League World Cup back to the UK England in 2021, which could provide a real boost to the northern economy
• Confirmation that after government’s £78m investment in Manchester’s flagship arts building - the Factory - renowned architect Rem Koolhas will design the building which is set to open in 2019
• Confirmation that Professor Dame Julia King will chair the £235 Royce Institute in Manchester 
• National Parks will be given new powers to allow them to build more sustainable revenue streams so the Lake District and Yorkshire Dales National Parks will benefit. Funding for public forests will also be protected - good news for the 70,000 acres of public forest estate land in the North West which includes Kielder Forest - the largest forest in England and one of the largest man-made forests in Europe
• The Chancellor also confirmed today the £12 billion promised over this Parliament for the Local Growth Fund, to support the competitive bids councils and local enterprise partnerships have made to back growth in their area
• A Shale Wealth Fund from up to 10% of shale tax revenues is being established as part of government backing of the development of shale gas, strengthening UK security while providing generous benefits for host communities. This is projected to invest £1bn in the North and other shale producing areas over the next 25 years