Labour unveils £285m funding boost for local communities so 'decisions can be made closer to home'

Andy Burnham has announced £285m to fund local communities, declaring mayors shouldn't have to go "cap in hand to Westminster".

Next week's budget will include funding to support local economies across England with the aim of boosting growth, the government has said.

Continuing with his pledge to boost devolution, the prime minister said leaders will get more control over investment in their communities under the Good Growth funding scheme.

"I'm calling time on local leaders going cap in hand to Westminster. That is no way to run a country," Mr Burnham said.

"When I became prime minister, I said that if a decision can be made closer to home, it should be.

"Today we're putting that into practice, shifting power into the hands of the people who know their communities best."

The funding forms part of Mr Burnham's push to rewire the power structures and invest in communities though devolution.

Soon after he was won the Labour leadership contest, the former mayor of Manchester made devolution a key part of his platform and has pledged to deliver the "biggest rebalancing of power our country has seen".

When the budget is unveiled on Wednesday, Chancellor John Healey will vow to unlock growth across Britain by putting communities in control of their economic future.

He said the package would end the era of power and resources being hoarded in Whitehall rather than in communities.

"Local people have the right to decide their own future," he said.

"Every community in Britain has potential - for too many it has gone untapped and wasted while money and power has been held in Westminster."

The government said the funding could go towards bringing empty shops and abandoned high streets back to life or improving transport links.

Mr Healey said: "Mayors and local leaders know what their communities need to grow, which is why we are giving them more money, more power and more capacity to get projects moving, build homes and make the right decisions for their areas.

"By putting more power and funding into local hands, we can unlock growth, create opportunity and restore hope for the future."

The announcement comes as the Conservatives challenged Mr Healey to deliver a plan to boost defence spending to 3% of GDP by 2030.

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In June, Mr Healey resigned as defence secretary over a row about defence funding, during which he warned that the government's failure to adequately fund the military made Britain less safe.

In his resignation letter, Healey said: "I am certain that a headmark date for 3% of GDP on defence in 2030 is what Britain must set."

Shadow chancellor Andrew Griffith said Mr Healey must resign if he does not announce the funding boost in the budget.

"By the end of his budget statement, John Healey must have fully funded 3% defence spending, or resign," he said.

"We are living in an era of extraordinary threats, and yet the chancellor is dithering over finding the money to pay the country's insurance premium.

"No firm would be left unscathed by a serious attack on UK soil.

"It's time for John Healey to get a grip, because you cannot have a strong economy without a strong defence."

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