Mayor welcomes spotlight on East Midlands in Budget

The Mayor of the East Midlands has backed the Chancellor’s Budget as "rewarding local people with a more affordable today".

During her Budget speech to the House of Commons, Chancellor Rachel Reeves pledged to scrap the two-child benefit cap from April 2026, implement a “Mansion Tax” on properties worth more than £2m and to make training for apprentices aged under 25 free for small and medium-sized apprentices. 

The Chancellor also moved to cut £150 off energy bills, freeze rail fares and increase the National Minimum Wage, for 16–20-year-olds, and the National Living Wage. 

Welcoming the plans, Mayor of the East Midlands Claire Ward said: "Here in the East Midlands, we are building a more affordable tomorrow: and we welcome a Budget which rewards local people with a more affordable today. Lowering energy bills, freezing train fares, and increasing the minimum wage: all three give us the breathing space we need to get on.”  

During her speech, Ms Reeves highlighted the Government’s commitment to the East Midlands, with Derby primed to get a percentage of the £9 billion AUKUS defence and security partnership between Australia, the United Kingdom and the United States. 

The Chancellor’s Budget document sets out the Government’s focus for the region. It says: “The government is committed to the success of Derby and the wider East Midlands. The government has made this clear through major transport and local growth funding, investing £2 billion through Transport for City Regions and over £100 million through the Local Growth Fund, alongside the decision to place Great British Railway’s headquarters in Derby, and investment in the next generation of nuclear technology with Rolls-Royce. The government will build on this progress by backing the Team Derby initiative, working in partnership to maximise the ongoing government investment in Derby.” 

The renewed commitment to the region has been welcomed by Mayor Claire. 

Mayor Claire said: “Derby is stepping into a new era of growth and today marks an important moment for our city and for the whole East Midlands. As the western anchor of the Trent Arc, Derby will help drive more than 40,000 new jobs across our region: in clean energy, nuclear engineering, advanced manufacturing, rail innovation and the wider supply chain. These are high-quality, highly skilled roles that will give local people real career opportunities for decades to come. 

“With Government backing for the Rolls-Royce nuclear cluster, the Investment Zone at Infinity Park, and the arrival of Great British Railways in our city centre, Derby is in prime position to attract billions of pounds of new domestic and international investment. This is how we strengthen our global footprint and make the East Midlands one of the most competitive regions in the UK. 

“Work will start immediately. We’ll assemble the public sector, businesses, our universities and our communities through the new Team Derby partnership. I will chair it and will ensure we focus relentlessly on identifying barriers, speed up delivery, and ensure local residents - not just investors or institutions - feel the full benefit of this growth.” 

Councillor Nadine Peatfield, Derby City Council Leader and Cabinet Member for City Centre, Strategy, Regeneration and Policy, said: “We’re thrilled that the Government has announced its support for Team Derby in November’s budget. 

“Derby’s defence, transport and energy industries are critical to the UK’s future prosperity and national security. The Government’s support will enable Team Derby to advance a holistic transformation plan aligning national industrial investment with local regeneration, housing and skills. 

"This is an opportunity to turn national investment into long-term regional prosperity, showcasing how place-based transformation can power Britain’s future industries. 

“Together, we can ensure Derby powers Britain’s future.” 

The Chancellor also announced a new Local Growth Fund for 11 Mayoral Strategic Authorities, including the East Midlands Combined County Authority, granting EMCCA a £107 million share of £902 million over four years “to invest in growth-driving interventions, including local infrastructure, business, and employment support and skills programmes”. 

Mayor Claire said: “The new £107m Local Growth Fund will help us bring more investment into the East Midlands, create good jobs, and grow the sectors where our region is strongest. 

“This fund will back the priorities in our East Midlands Growth Plan, helping local businesses innovate, supporting our key industries to expand, and making our region more competitive. It will also let us improve the infrastructure that helps people reach more job opportunities and helps businesses connect and grow. 

“It means we can develop the skills local people need for the industries and technologies that are shaping our future, so they’re ready for the new jobs this investment will create. 

“Most importantly, it will help every part of the East Midlands benefit from stronger growth, more investment and a thriving economy that gives people real opportunities close to home.” 

The Budget followed the prior announcement of plans for England’s mayors – including the Mayor of the East Midlands – to be able to invest in transport, infrastructure, and the visitor economy through a new levy on overnight stays.

The Government said the fee would apply to visitors’ overnight trips and “it would be up to mayors and other local leaders to introduce a modest charge if it’s right for their area”.   

The move is designed to give UK mayors have the same powers as their counterparts in cities like New York, Paris and Milan, where charges on short-term trips are already commonplace. 

Mayor Claire said: “We want more people to visit the East Midlands, and the power to introduce the new visitor levy will allow us to decide how to invest, directly, into making places great areas to live, work, and visit, supporting our ambition to grow the visitor economy by £1 billion. 

“This is a significant change. We are working with the sector to build Visit East Midlands, working closely to co-design with our partners a scheme which works for our region.” 

Megan Powell Vreeswijk, Marketing Nottingham and Nottinghamshire Chief Executive, said: “We welcome the opportunity for our Mayor to establish a visitor levy across our region. This will enable us to deliver on areas of promotion, improvement and visitor attraction to boost our economy, create jobs and elevate Nottinghamshire as the wonderful place it is to visit and meet.” 

Jo Dilley, Visit Peak District & Derbyshire Managing Director, said: “We look forward to working with the Mayor and the wider industry to get the best results for the sector. It is essential that any visitor levy is retained locally and aligned with our growth strategy. 

“With businesses continuing to face significant increases in operating costs, any new measure must be introduced carefully to ensure it supports our visitor economy. 

“We therefore welcome a full and meaningful consultation with businesses to help shape how a levy can be implemented effectively. We remain committed to working with the Mayor to ensure that any approach strengthens her ambition for a thriving, competitive East Midlands tourism sector.”