Money talks: The finances of English Combined Authorities

Abstract

The mayoral combined authorities created in England in the mid-2010s were hailed as a new form of territorial governance, tasked with driving economic growth in city regions. Much debate has ensued about the nature, potential and reach of the new organisations, located in a complex web of governance networks, but lacking an explicit policy rationale or clearly identified territorial boundaries. This article examines the funding and financial arrangements of the new bodies, as these embody the character of central–local relationships; these in turn are the critical influence on the activities and priorities of mayoral combined authorities in England. It argues that central government funding transfers are assuming a disproportionate influence on the functions and priorities of mayoral combined authorities, due to the metagovernance framework within which they operate. This incentivises them to develop into ‘grant coalitions’, seeing central funds as the only available route to local impact.