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Treasury Weighs £9bn Annual Borrowing for Devolution Projects

8/5/2026

Summary

Story summary

Treasury under Finance Minister John Healey is weighing extra borrowing of billions of pounds under flexible fiscal rules.
Rachel Reeves’ 2024 rule change to count public-sector assets allows higher debt for infrastructure, housing and business aid in Andy Burnham’s devolution plan.
Analysts say the British Business Bank, National Wealth Fund and National Housing Bank could channel the borrowing, with the Resolution Foundation estimating £9 billion annually by 2031.

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Story summary

Treasury under Finance Minister John Healey is weighing extra borrowing of billions of pounds under flexible fiscal rules.
Rachel Reeves’ 2024 rule change to count public-sector assets allows higher debt for infrastructure, housing and business aid in Andy Burnham’s devolution plan.
Analysts say the British Business Bank, National Wealth Fund and National Housing Bank could channel the borrowing, with the Resolution Foundation estimating £9 billion annually by 2031.