A £55.6 million increase in capital investment is set to see the West of England Mayoral Combined Authority invest an unprecedented £416 million in the region in the 2026/27 financial year – a nine percent increase from the current year.
This enhanced investment, to be considered at the Mayor and council leaders’ meeting on 30 January, can deliver more projects that make a difference to people’s lives across the region, including on transport and housing. The proposed budget aligns with the Growth Strategy priorities approved by the Mayor and council leaders at their last meeting, to continue creating new jobs and opportunities in the country’s fastest growing region.
The coming year sees the start of the region’s £25 million Creative Places Growth Fund to invest in the creative and cultural sector. Made Smarter, a programme to support businesses to improve their productivity through investment in digital technologies, is set to expand, alongside £525,000 earmarked for Low Carbon Business Support.
£11 million is proposed to help further deliver on the whole region’s commitment to tackling the housing crisis. This includes £6.55 million secured from government for the regional authority to become the national delivery partner for the Small Sites Aggregator programme.
£32 million committed for highway maintenance includes an extra £7 million to fix potholes in the West. The transport levy is set to increase by £1.6 million to invest in buses, on top of the first three-year Bus Grant for the West of England, which should enable over £28 million for supported services and £9 million for fare offers like free travel for care leavers, capped child bus fares, and a continuation of Kids Go Free following its success during the summer and Christmas school holidays.
Fashion Museum Bath is also set to receive £1.745 million of regional funding from the Investment Fund for initial works and public realm improvements to support its relocation to the Grade-II listed Old Post Office in the Milsom Quarter, with a full business case set to be drawn up in the summer.
Helen Godwin, Mayor of the West of England, said:
“Record investment worth more than £400 million from our regional authority will help us keep writing this new chapter for the West of England. More money is earmarked for transport, housing, and culture, including Fashion Museum Bath, to make a real difference that people can see and feel across our part of the world.
“We are securing more government funding and coming together to bring in further investment to create more jobs and opportunities for local people. With our new Business Board set to meet for the first time next week, and a commitment from government to work together for more funding and powers for the West’s future, these are exciting times for our region as things continue to step up a gear.”
Councillor Kevin Guy, Deputy Mayor and Leader of Bath & North East Somerset Council, said:
“I am personally delighted to see our ambitious plans for Fashion Museum Bath recognised with this initial £1.745m grant. It signals a bright future for the creative and visitor economy of the West of England. Fashion Museum Bath will secure future investment in the city, create jobs, and support the continued growth of the tourism and culture sectors across our region. Culture sits at the heart of vibrant places, and it remains a key priority for Bath & North East Somerset Council and is something that all our residents should be able to enjoy.”
Councillor Tony Dyer, Leader of Bristol City Council, said:
“Record investment in our region is always welcome, and it’s positive to see funding directed toward the projects that matter most to our communities such as better transport, more housing, and support for local businesses. As we continue to grow, it’s vital that this investment reaches every corner of the West of England, including the neighbourhoods that have historically been overlooked.
“We will continue to work with regional partners to make sure that all our residents and local economies benefit fairly from this growth, and that funding is prioritised where it can have the biggest impact.”
Councillor Mike Bell, Leader of North Somerset Council said:
“Investment from partners, including the West of England Mayoral Combined Authority, is crucial to delivering projects like the Portishead and Pill to Bristol rail line and the infrastructure we need to support this growth. It’s great that a record amount of investment is being delivered across the West, which will bring real benefits to our residents including creating jobs, better transport, an increased cultural offer and more homes.”
Councillor Maggie Tyrrell, Leader of South Gloucestershire Council, said:
“The proposed MCA Budget will support efforts to become an ‘Established Mayoral Strategic Authority’ – the status that will unlock the highest levels of devolution and funding. We fully support this ambition as this will maximise benefits for residents and businesses across our region.”
Internally, an organisational improvement plan continues to be delivered, with a new senior structure and target operating model already being implemented after being supported by an internal panel and the Local Government Association. Solar panels are expected to be installed to reduce costs and emissions.
Work also continues on the first constitutional review in the combined authority’s history to enhance governance, with recommendations from external auditor Grant Thornton to strengthen reserves to come more into line with other similar authorities. A Project Management Office is set to be introduced to provide oversight, assurance, and coordination of the authority’s portfolio of major programmes and projects. While additional projects are anticipated in 2026/27, the budget currently includes those with funding already confirmed and reflects that some time-limited grants and funding are coming to an end.
