Andy Burnham has promised that local leaders in England will no longer have to come “cap in hand to Westminster” ahead of a fresh drive to devolve spending power in next week’s budget.

In his statement on Wednesday, the chancellor, John Healey , will include plans for a new £1.5bn borrowing facility, to be drawn up in collaboration with mayors over the next two years.

Regional mayors have long complained that they are constrained by their limited borrowing power – in contrast to local authorities in the US and some European countries, which commonly issue their own bonds.

The borrowing plan will form part of a big devolution package aimed at boosting regional economic growth.…