West Yorkshire sets out billion-pound budget to deliver a brighter region that works for all

West Yorkshire leaders have approved a landmark budget of over a billion pounds to boost growth through delivering a better-connected, better-skilled and better-built region, it can be announced.

As the region prepares to take control of its first-ever ‘integrated settlement’ from April, the leaders of Bradford, Calderdale, Kirklees, Leeds and Wakefield have today (Thursday 22 January) met with Mayor Tracy Brabin to sign-off on over £1,200,000,000 of spending.

Reiterating her pledge to “deliver, deliver, deliver”, Mayor Brabin said the budget would give the region greater flexibility than ever before, with power and money put directly into the hands of local leaders. This is a huge step forward in West Yorkshire’s devolution journey.

Tracy Brabin, Mayor of West Yorkshire, said:

“This historic budget is all about three things – delivery, delivery, and delivery.

“By investing in the high‑quality homes people want, the skills and employment support people need, and the quick and reliable transport links people deserve, we will transform the economy and society of West Yorkshire for generations to come. 

“For our communities, this will mean better buses, the next steps towards mass transit, warmer and more affordable homes, and faster and simpler routes into good jobs.

“This is how we’ll boost business growth and put more money in people’s pockets.”

The budget, which received unanimous support from all five corners of West Yorkshire, focuses on delivering economic growth and prosperity through:

• Building a better-connected West Yorkshire, with immediate investment in transport services and stations alongside new funding to smooth the path to bus franchising and mass transit, so that residents and commuters can get around quickly, cheaply and reliably
  
  
• Creating a region of learning and creativity, so that every working-age resident can get the skills and the employment support they need to secure a well-paid job, put food on the table, and lead a happy and fulfilling life
  
  
• Investing in new and better housing so that more families can have a secure, affordable and energy-efficient roof over their head, and live in a safe and vibrant community which they can be proud to call home

Discussing the proposed revenue budget of £487 million, alongside an ambitious programme of capital investment worth £767 million, leaders agreed on the need to deliver immediate benefits for communities and businesses, while also laying the groundwork for transformational changes to the region’s housing and infrastructure.

The budget promises to usher West Yorkshire from a period of planning to an era of delivery, taking advantage of the certainty and the flexibility afforded by the integrated settlement to better align investment across transport, skills, housing and support for businesses.

It is expected that this new coordination of funds will enable the region to maximise the benefits of the investment it receives from the government, empowering local leaders to deliver on the region’s ambitious Local Growth Plan.

Notes to editors:

To read the full budget paper, please visit: Item 11 - Business Planning and Budget.pdf

To read a summary of the budget, including a breakdown of key spending decisions and investment examples for each district of West Yorkshire, please see below:

West Yorkshire Combined Authority Revenue Budget and Capital Programme for 2026-2027:

Transport:

Transport remains the backbone of Combined Authority investment. The transport revenue budget of £251 million over the next financial year will fund concessionary travel, tendered bus services and the Mayor’s Fares scheme to keep fares low, alongside the transition to bus franchising and the operation of stations and interchanges.

To support this, the transport levy on the five districts is set to rise by 2% to £99.9 million, with no general Mayoral precept proposed for a second-term running, to keep costs as low as possible for working families.

One‑off use of the £13.5 million of Combined Authority reserves will help to manage the costs of managing and maintaining the transport network in the final year of the transition to bus franchising, with future detailed models set to be finalised ahead of phase one going live in Leeds and Kirklees from April 2027.

The programme of capital spending will see investments of £326 million through the City Region Sustainable Transport Settlement (CRSTS), £126 million through the West Yorkshire Transport Fund, and £125 million through the Transforming Cities Fund. Collectively, this investment will drive major improvements to bus, rail and active travel links, and prepare the physical assets needed for a fully-franchised bus network.

Skills:

The budget also steps up support for people and businesses. Over £86 million has been allocated to training and employment support, including £75 million for adult skills programmes – such as free courses for jobs, skills bootcamps and targeted industry placements – while £11 million of Connect to Work funding will help residents with disabilities and health conditions to secure, stay in and succeed in good jobs that work for them. An additional £10 million from the region’s Economic Inactivity Trailblazer will target acute skills gaps so that local employers can fill vacancies and grow their businesses.

Together, these investments will help people to progress into good work more quickly and simply, boosting business growth and supporting the region’s fastest growing sectors including advanced manufacturing, health and digital technologies, financial and professional services, the green economy, and the creative industries.

Housing:

Major investment is also targeted at housing and regeneration. The Combined Authority will use the newfound flexibilities of its integrated settlement to bring forward a pipeline of high-quality, affordable homes nestled within thriving town and city centres.

Revenue funding of almost £3 million will help deliver a pipeline of new housing projects, while capital plans include a £26 million injection from the National Housing Delivery Fund to increase housing supply, and a £29 million investment from the Brownfield Housing Fund to unlock difficult sites.

Alongside delivering new housing, a major priority will be to improve existing homes, including £14 million to make social homes more energy-efficient. This will cut carbon emissions and slash energy bills for local families at no upfront cost to them.

A further £28 million of capital spending will fund economic development and regeneration, including £17 million for projects within the region’s Investment Zone, in order to strengthen West Yorkshire’s internationally significant healthtech sector.

Safer Communities:

Creating safer communities is also a major priority of the budget. The proposed capital investment programme includes £8 million to reduce flood risk and safeguard homes and businesses from extreme weather.

At the same time, funding is allocated to community safety projects and grants, including £4.3 million to support the work of the Violence Reduction Partnership, subject to confirmation of the final grant award from the Home Office. 

These measures sit alongside a new Local Nature Recovery Strategy to protect wildlife, boost biodiversity, and create greener, more vibrant communities.

Financial Considerations:

Financially, the budget that has been proposed and approved is both prudent and deliverable. Central corporate income – including income from investment, levy contributions and ‘Mayoral Capacity Funding’ from central government – supports the net costs of delivery, with a planned contribution of £5.7 million to the West Yorkshire Transport Fund and careful, time‑limited use of the authority’s reserves to smooth the transition to bus franchising.

The Combined Authority’s Director of Finance and Commercial Services (or ‘Section 73 Officer’) advises that, to the best of their knowledge, the 2026-27 budget estimates are robust, protect adequate reserves, and manage risks through ongoing medium‑term financial planning and rigorous in‑year monitoring.

Crucially, the budget sets up the region to capitalise on its integrated settlement from April. This single, flexible funding arrangement will bring together funding streams for transport, skills, housing and other priorities for the first time, starting with £398 million in 2026-27 and rising over the next four years, giving local leaders the certainty to plan, invest and deliver at scale and at speed.

In total, the settlement will see the Combined Authority invest almost £2 billion over the next four years, supporting projects that drive inclusive growth and raise the living standards of people in the region.

It will also strengthen the accountability of the Mayor and the Combined Authority through a new corporate plan and outcomes framework to be developed over the coming months, ensuring progress is measured transparently against agreed regional priorities.

As the Combined Authority moves from planning to delivery, these priorities will mean better‑connected towns and cities through bus reform and mass transit, a region of learning and creativity that helps people upskill and progress in good work, support for local businesses and the region's fastest growing sectors, and more of the high-quality homes and vibrant places that make West Yorkshire the best place in the country to live, work, raise a family or start a business.

Examples of investment across each district:

Please note – these examples are indicative of the types of schemes included in the 2026-27 revenue budget and capital programme, and as such will be subject to the usual assurance processes, business cases, and relevant approvals:

Bradford:

• Bus network improvements and interchange upgrades funded through the CRSTS and the Transforming Cities Fund, supporting reliable and affordable services ahead of bus franchising.
• Investment Zone activity to strengthen Bradford’s role in the region’s health and life sciences corridor, creating modern, flexible workspaces and specialist facilities for growing firms to utilise.
• Brownfield Housing Fund schemes to unlock challenging sites and deliver high-quality, energy‑efficient homes close to good public transport links.
• Targeted adult skills provision and skills bootcamps to help residents to learn new skills and progress quickly into good, local jobs.

Calderdale:

• Local transport and active‑travel schemes to make everyday journeys safer and more reliable, connecting towns centres and other concentrations of employment across the district.
• Capital and natural flood management projects to reduce flood risk and protect homes and businesses in vulnerable locations.
• Brownfield and town centre regeneration to bring vacant sites back into use and boost highstreet footfall.
• Adult education and employment support tailored to the needs of local employers, with a focus on green and construction skills.

Kirklees:

• Road, corridor and junction upgrades to improve bus reliability and journey times across the district.
• Investment Zone support for health innovation and business growth, better linking Kirklees into the region's healthtech corridor.
• Social Housing Decarbonisation works to bring down energy bills for tenants, alongside new brownfield housing starts.
• Skills programmes aligned to advanced manufacturing and the creative industries to help people step into and stay in better‑paid work.

Leeds:

• Early‑stage work on mass transit and the integration of the future Weaver Network, alongside major CRSTS and Transforming Cities schemes to improve bus, rail and active travel connectivity.
• Investment Zone projects focused on life sciences and healthtech, expanding high‑quality lab space and technical facilities to support fast-growing firms.
• Major regeneration and culture funding, including flagship schemes such as British Library North on the South Bank, to boost jobs and grow the visitor economy.
• Adult skills and employment support at scale, including free courses for jobs, skills bootcamps and industry placements, to help residents access good jobs more quickly and simply.

Wakefield:

• Bus station and interchange improvements as well as wider network enhancements to prepare for bus franchising and deliver simpler, better services.
• Brownfield Housing Fund delivery and housing pipeline development to accelerate the delivery of affordable homes near to good public transport links.
• Flood alleviation and resilience measures to safeguard communities and key employment sites.
• Skills support focused on construction, the green economy and logistics to meet employer demand and raise household incomes.