Mayors are set to be one of the big winners in the budget after Sir Keir Starmer personally intervened to ensure they have more freedom to spend cash and boost growth, Sky News understands.
England’s dozen metro mayors have been working together to push the prime minister, Rachel Reeves and Angela Rayner for more powers and cash after years of frustration at the way the Treasury allocates money for projects and salaries.
But there is deep concern that Ms Reeves, the chancellor, may only allocate money to some key areas but not others.
There is agreement among all the mayors who spoke to Sky News that the squeeze on local government budgets – which metro mayors work alongside – will cause further councils to go bankrupt and hamper their ability to regenerate their local regions.
A so-called “single pot” of money allowing them much greater freedom to allocate funds where they deem most necessary;
Greater flexibility to raise local taxes. In Liverpool City Region, metro mayor Steve Rotherham is pushing a “tourist tax” of £1 per night on the city’s hotels to fund local tourist projects. There are hopes among some mayors they will get more flexibility in the way they can spend locally raised taxes, known as precepts;
Multi-year budget settlements to allow for longer-term planning.
The mayors are pushing for more powers in a range of areas from transport, where they are hopeful of some success, to skills, where they see the Department for Education reluctant to release their grip.
Sky News understands that Sir Keir has repeatedly said in meetings that he believes metro mayors, who have planning powers and work with clusters of local authorities, must be put at the heart of the push for growth across England.
‘Massively frustrating’ Treasury
More on Budget 2024
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Image: Mayor of Teesside Ben Houchen. Pic: PA
Liverpool City Mayor Mr Rotherham told Sky News that he has been told that mayors “can become the delivery arm of national government” across a whole range of projects, including retrofitting homes, improving transport and productivity and skills.
However, several mayors who spoke to Sky News sounded a warning that they need to break free from the Treasury’s way of deciding what should get funded if growth is as big a priority as the government says.
Image: Liverpool City Mayor Steve Rotherham. Pic: PA
Mr Rotherham said the Treasury has been “massively frustrating to date” and “we are pushing to see changes.”
He called for urgent reform to the Treasury manual for evaluating the value for money of big projects – known as the Treasury Green Book.
He claimed that this way of measuring value is biased against more long-term projects, making true reform impossible.
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1:56
Sam Coates looks ahead to Westminster’s oddest budget tradition
Councils ‘on the brink of bankruptcy’
Meanwhile, Ben Houchen, the Conservative mayor of Teesside, said: “The Treasury is a very difficult department to deal with.
“The officials, I think, have a very narrow view – they know the cost of everything and the value of nothing.”
He warned the chancellor that if, as expected, she announces lots of big infrastructure and growth projects on Wednesday but also squeezes on the day-to-day running costs of government, then the initiatives unveiled next week may never happen.
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“If you allocate money for big projects like train stations or roads, or whatever it might be, big infrastructure – that’s one thing,” he said.
“But to deliver that, you’ve got to have the day-to-day spending to employ people, get through planning – all of that stuff in the background that takes money, revenue, day-to-day spending.
“So allocating a big cheque is one thing. That doesn’t necessarily mean that we’re going to see those projects come into fruition if the money isn’t there to develop those projects in the first place.”
Image: Earlier this month Sir Keir Starmer met Tees Valley Mayor Mr Houchen (second right) and other regional leaders during the inaugural Council of the Nations and Regions in Edinburgh. Pic: PA
Mr Houchen said local councils in the Tees Valley were in a bad financial situation.
“You’ve got local councils, which is what most people interact with on a daily basis, in a very difficult situation.
“The quality and experience of the staff aren’t there. Money is extremely tight.
“Things like adult and children social services in Tees Valley for instance usually accounts for about 80% of a council’s entire budget, just on adult and children’s social services. So it’s in a very difficult state. I’m acutely aware, not just across the Tees Valley but across the country, there are lots of councils on the brink of bankruptcy.
“You’ve seen a couple of those already under the previous government. Without more revenue funding and funding for the types of departments like local government, that’s not going to change that outcome, and we could still see loads of capital spending, but we could still see governments going bust, services not improving and actually continuing to deteriorate.”
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Richard Parker, the new Labour mayor of the West Midlands, also agreed funding was squeezed for councils.
“Birmingham has lost £1bn worth of funding over the last 10 years… that’s been taken out of some of the poorest and most vulnerable communities, and it’s made those communities even more vulnerable.
“And I can’t afford our councils to fail because if our councils fail, the communities they support fall over.
“So I understand the criticality of the situation.
“I’m hoping the government will start, as they’ve been saying, to make longer plans for funding for local government, so they get an opportunity to plan ahead and plan for the future rather than working to short-term budgetary cycles of a year.”
Image: Sir Keir also met regional mayors, including West Midlands Mayor Richard Parker (left), in July. Pic: PA
Mr Parker made clear that getting more powers over skills – which some other mayors think unlikely at the moment – will be a key driver for growth.
“I actually then need some revenue support, some more powers over particularly post-16 education,” he said.
“We’ve got around a quarter of the workforce in the West Midlands with low skills in those skills, which means that too many people in work are in low-paid jobs.
“And I’ve got twice as many young people out of work than the national average.
“So I’ve got to help these people get access to the skills they need to build careers here and get access to better-paid jobs and indeed the jobs that investors need to fill who are coming into this region.”
Education Secretary Bridget Phillipson, deputy leader of Reform UK Richard Tice, former governor of the Bank of England Mervyn King, and director of the Institute for Fiscal Studies Paul Johnson will be on the Sunday Morning with Trevor Phillips show on Sky News from 8.30am this morning.
Sir Keir Starmer has said stability in the Middle East is “a priority” following US strikes on Iran’s nuclear facilities, as the world has reacted to the attack.
The prime minister also called on Iran to “return to the negotiating table” to “reach a diplomatic solution to end this crisis”.
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2:30
US strikes on Iran explained
In a statement, Sir Keir said: “Iran’s nuclear programme is a grave threat to international security.
“Iran can never be allowed to develop a nuclear weapon, and the US has taken action to alleviate that threat.
“The situation in the Middle East remains volatile and stability in the region is a priority.
“We call on Iran to return to the negotiating table and reach a diplomatic solution to end this crisis.”
The UK was not involved in the strikes but was informed about them in advance by the US, Business Minister Jonathan Reynolds told Sky News’ Sunday Morning with Trevor Phillips.
Sir Keir and Foreign Secretary David Lammy had been pushing for a diplomatic solution. On Thursday, the prime minister warned of a “real risk of escalation” in the conflict.
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3:34
Trump: Iran strikes ‘spectacular success’
The US struck three sites in Iran early on Sunday morning, with Donald Trump boasting the country’s key nuclear sites were “completely and fully obliterated” in an address to the nation from the White House and warned there could be further strikes if Iran retaliates.
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1:20
‘Trump’s bold decision will change history’
Netanyahu praises Trump
Israel‘s Prime Minister Benjamin Netanyahu praised Mr Trump for the strikes, saying: “Your bold decision to target Iran’s nuclear facilities with the awesome and righteous might of the United States will change history…
“History will record that President Trump acted to deny the world’s most dangerous regime the world’s most dangerous weapons.”
UN secretary-general ‘gravely alarmed’ by US attack
But UN secretary general Antonio Guterres said he was “gravely alarmed by the use of force” by the US against Iran.
“This is a dangerous escalation in a region already on the edge – and a direct threat to international peace and security. There is a growing risk that this conflict could rapidly get out of control – with catastrophic consequences for civilians, the region, and the world.”
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European Union foreign policy chief Kaja Kallas urged all sides to step back and return to the negotiating table. “Iran must not be allowed to develop a nuclear weapon,” she said in a post on X.
“I urge all sides to step back, return to the negotiating table and prevent further escalation,” she said, adding that EU foreign ministers will discuss the situation tomorrow.
Image: Cuba’s President Miguel Diaz-Canel. Pic: Reuters
How the world reacted to the strikes
Cuba’s President Miguel Diaz-Canel said on X: “We strongly condemn the US bombing of Iran’s nuclear facilities, which constitutes a dangerous escalation of the conflict in the Middle East.
“The aggression seriously violates the UN Charter and international law and plunges humanity into a crisis with irreversible consequences.”
Venezuela’s foreign minister Yvan Gil said his country’s government “condemns US military aggression” and “demands an immediate cessation of hostilities”.
In a statement, an Australian government spokesperson said Iran’s nuclear and ballistic missile programme “has been a threat to international peace and security”.
Image: Japan’s Prime Minister Shigeru Isiba. Pic: Reuters
Japan’s Prime Minister Shigeru Ishiba said it is “crucial that there be a quick de-escalation of the conflict”.
Italy’s foreign minister Antonio Tajani said after the attack that his country’s government hopes “a de-escalation can begin and Iran can sit down at the negotiating table”.
The US attack came after more than a week of strikes by Israel, which have significantly degraded Iran’s air defences and offensive missile capabilities, and damaged its nuclear enrichment facilities.
Israel’s strikes on Iran have killed at least 865 people and wounded 3,396 others, according to the Washington-based group Human Rights Activists. The group said of those killed, 365 were civilians and 215 were security force personnel.
Since the local elections Reform UK has had no shortage of good polls.
But a new one suggests Nigel Farage‘s party has a chance not only of winning the next election, but of claiming a decent Commons majority, too.
In February, Reform topped a Sky News/YouGov poll for the first time, with Nigel Farage’s party edging in front on 25%, Labour pushed into second on 24%, with the Tories on 21%.
But a fresh one from Ipsos puts Reform on 34%, nine points ahead of Labour on 25%, with the Conservatives a distant third on 15%.
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16:03
Zia Yusuf: I sent a tweet I regretted
While the other parties are flatlining, Reform appears to be pushing boundaries.
Were these figures to be replicated across the country at a general election, with every constituency behaving the same way, then Reform could win as many as 340 seats, giving it a majority of 30, Sky News analysis suggests.
Labour could be reduced to 176 seats, down 236 on last year’s election, while the Tories would hit a record low of 12 seats.
But polling should always be taken with a pinch of salt and with the firm acknowledgement that there is not an election coming any time soon.
Conservative backbenchers might also tell you publicly that opinion polls are notoriously difficult to translate into seat numbers because voting percentages in individual constituencies can vary hugely from the overall average.
But the truth is that the symbolism of Reform UK topping another poll is likely to be noticed by MPs from all parties, especially backbench Conservatives who have actively been hoping their leader, Kemi Badenoch, can help them climb the polls and bring the party back into public favour.
Politics is a brutal game and when it comes to toppling underwhelming party leaders, the Tories are more ruthless than most. One wonders how many of these polls Mrs Badenoch’s party will allow her to endure.
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As the party approaches a year since its major victory, it will not have much to celebrate if these numbers are anything to go by.
According to this survey, only 19% are satisfied with the job Sir Keir Starmer is doing as prime minister, with 73% dissatisfied.
And the figure of 25% of voters intending to vote Labour is a level not seen since October 2019.
While abstract to much of the public, polling can often shape not only the chatter inside Westminster but how and when plots by MPs begin.
For Reform UK, this is a much-needed morale boost after a surprise resignation by their former Chairman Zia Yusuf, and then an almost immediate U-turn back into the party.
And Kemi Badenoch – who said during her leadership campaign that the Conservatives needed to go back to first principles and that this would take time – will be wondering, seven-and-a-half months after winning the leadership, how much time she really has left.
Ipsos interviewed a representative probability sample of 1,180 British adults aged 18+, via the Ipsos UK KnowledgePanel. Data was collected between 30 May-4 June 2025.
The impending ban on protest group Palestine Action has divided opinion – described as both “outrageous” and “long overdue”.
Home Secretary Yvette Cooper is expected to take the step after the group broke into RAF Brize Norton in Oxfordshire on e-scooters and sprayed two Voyager planes with red paint.
The prime minister described the attack as “outrageous” and a rapid review of security at MoD bases is under way.
It was the latest protest in a five-year campaign from Palestine Action (PA) that has targeted arms manufacturers, financial institutions, political figures and government buildings.
Red spray paint has become its signature.
Image: Damage to planes at Brize Norton
On its website, PA says it is a “direct action movement” committed to ending “global participation” in what it calls Israel’s “genocidal and apartheid regime”.
It adds that it uses “disruptive tactics” to target “corporate enablers of the Israeli military-industrial complex”.
Banning the group would make membership of it illegal. It would be treated as a terrorist organisation.
Saeed Taji Farouky, a spokesman for PA, told Sky News that potential proscription was “unfair”, adding that it was “ludicrous” that a “civil society direct action group” could end up on the same list as ISIS.
He added: “It’s not logical, it’s not even consistent with the British legal definition of terrorism, it’s a reaction that’s been taken overnight, with almost no discussion or debate.
“The whole thing is incredibly worrying, mostly for what it means about British law in general, about undermining the very basis of British democracy and the rule of law.”
There are “no circumstances” under which the two people who breached Brize Norton would be handed over to the police, he said.
Singer-songwriter Paloma Faith, who spoke at a pro-Palestine rally in Whitehall in central London on Saturday, told Sky News she was “devastated” by the move.
Image: Paloma Faith spoke at the pro-Palestine rally
“I have met some of the people who have friends in that group. They are young students and they are basically trying to do something because they feel that our government is failing them.”
She added that “everyone” wants to end what she described as a “massacre” in Gaza.
Israel says its military campaign in Gaza is a way of defending itself against Hamas, which killed more than a thousand people in its 7 October attacks and took about 240 people hostage. Hamas-run health authorities claim Israeli attacks have since killed almost 56,000 people in Gaza.
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1:49
What’s happening to Palestine Action?
Faith continued: “When you scribble on something, or paint on it, it’s a non-violent protest and it shouldn’t be made at the same level as a violent protest – it is unjust.”
Ben Jamal, director of the Palestine Solidarity Campaign, backed Palestine Action’s use of non-violent protest.
Image: A bank damaged by Palestine Action
He told Sky News: “There has been a place for that in all political movements in history.
“In the struggle for the rights of black people in the US, in the struggle against apartheid in South Africa, in the struggle for women to have the vote, people took forms of non-violent direct action.
“Imagine if we had the current [situation] back in those days – we would have been proscribing the suffragettes, treating them as terrorists.”
Image: There was a pro-Israeli counter-protest in London
Others have welcomed the move. Lord Walney, who served as the government’s independent adviser on political violence, told Sky News the decision was “long overdue”.
“Palestine Action have acted as the enemy within which is why it’s right, now, to crack down on them,” he said.
“They have terrorised working people for a number of years and there’s a number of serious violent charges that are going through the court system at the moment.”
The UK government is expected to announce its decision early next week.