Britain’s Leading Edge responds to the Autumn Budget

Britain’s Leading Edge – the partnership of twelve rural, coastal, and heartland local authorities across England – responds to the Chancellor’s Autumn Statement which comes at a crucial moment for communities across the UK. Rural and coastal places have much to offer in the context of a cost of-living crisis with over 6 million people living in our area: providing eight percent of England’s GVA, 37 percent of England's renewable energy and 44 percent of England’s land mass. 

These communities have for many years suffered from underinvestment, a lack of recognition for the increased costs associated with service delivery and a policy legacy that has unduly focused on urban areas. While we welcome the government’s commitment to targeted investment and measures aimed at supporting growth, the chancellor’s budget falls short of addressing the deep-rooted structural inequalities that continue to hold back rural and coastal communities.  

In this, our response chimes with and sets out to further strengthen ongoing representations to government by channels including the Rural Services Network (RSN) and the County Councils Network (CCN). There are longstanding challenges remaining in areas such as fuel poverty, higher living costs, transport dependency, off-grid energy use and local authority funding pressures. Early measures, such as changes to energy bills, fuel duty, business rates and Neighbourhood Health Centres raise important questions about how effectively they will work for rural residents and rural service providers. 

Our areas represent significant untapped economic potential for the UK, yet remain constrained by underinvestment in infrastructure, skills, and connectivity. Without a more ambitious approach, the gap between these regions and urban centres will persist, limiting national prosperity with the real risk that these areas will continue to be left behind. 

The combined regions of Britain’s Leading Edge have the following response: 

Recognition of rural service delivery and growth potential 

Britain’s Leading Edge (BLE) acknowledges the government’s £13 billion investment for skills, business support, and infrastructure across seven Mayoral Combined Authorities. We are disappointed that funding is only being prioritised for areas with a mayor, including the tourism levy, which leaves regions currently without a mayor left behind. Several of the regions within BLE have applied for mayoral status and been unsuccessful, with no clear pathway in sight.   

This funding reinforces a two-tier system where rural and coastal regions - including those without mayoral status - are excluded from similar opportunities. BLE members urge government to ensure all regions have access to growth funds, fiscal tools, and investment in infrastructure to unlock their economic potential.  

Britain’s Leading Edge continues to call for national policy that reflects the real costs of delivering services in rural areas and the distinct economic contributions these regions make. This budget has failed to do this and seems to have moved away from the findings of the Fair Funding Review 2.0, with early indications that the settlement for some rural authorities will be worse for areas that have higher delivery costs. The removal of rurality from grant distribution formulas will also disproportionately disadvantage sparsely populated areas. These factors must be reinstated to ensure funding reflects the real costs of delivering services across geographically dispersed communities. It is positive that government appear to be committing to fully fund the costs of SEND from 2028/29, but local authorities urgently need clarity on how historic and accruing Dedicated Schools Grant deficits will be managed up to that point. 

Energy security 

Britain’s Leading Edge members note the government’s commitment to delivering secure, clean, and cheaper energy and its steps to reduce electricity costs for business, but rural and coastal regions need equivalent ambition which includes long-term investment in renewable energy infrastructure, grid capacity, and skills to unlock economic resilience and wealth creation. The BLE area produces around 40% of England’s renewable energy, more than 4 times that of the major cities.  

Investing in connectivity and innovation 

Britain’s Leading Edge recognises the chancellor’s measures to back business and unlock innovation, including tax changes to incentivise investment in scaling companies, reforms to the UK research and development (R&D) system, and lower business rates for retail, hospitality, and leisure.  

While these measures are important, BLE regions require fair investment in research, development, and infrastructure - digital connectivity, sustainable transport, and innovation hubs - to unlock growth in clean energy, agri-tech, and advanced manufacturing. Rural authorities host a disproportionate share of SMEs, and start-ups - though only 0.8% of companies - generate 50% of SME output. Leveraging this potential, alongside BLE’s agricultural assets and emerging tech clusters, requires alignment with the government’s Modern Industrial Strategy priority sectors to ensure rural economies are not left behind. 

Defending the UK 

BLE regions welcome the Chancellor’s additional £5 billion for defence in 2025-26.  Our regions play a critical role in national security, hosting key defence assets and supply chains that underpin the sector. However, maintaining and strengthening this role requires targeted continued investment and backing. Funding for defence infrastructure upgrades, advanced skills development, and cyber resilience is essential to protect against evolving threats and ensure the UK remains secure in an increasingly complex global environment. 

Delivering growth and supporting business 

We welcome the chancellor’s commitment to improving the system for business as well as further investment in skills and youth opportunity through the Growth and Skills Levy and the Youth Guarantee. Fully funding SME apprenticeships for under-25s will be particularly important in rural and coastal economies, where small businesses are crucial for local growth. Additional investment in the Youth Guarantee strengthens efforts to retain talent and create pathways for young people to thrive in BLE regions. 

Conclusion: Britain’s Leading Edge calls for a more ambitious, inclusive approach to investment, one that recognises the unique challenges and opportunities of rural and coastal communities. Britain’s Leading Edge looks forward to launching our refreshed manifesto with partners and Government in the new year, providing a roadmap for growth and resilience across our regions. We invite Ministers and officials to engage with us now to shape policies that work for every part of England - not just the cities.