English mayors and regional leaders are set to receive increased funding and expanded powers in the Budget , under ministerial plans to stimulate nationwide economic growth.

Chancellor John Healey said that the strategy aims to harness the “untapped and wasted” potential within regions and cities.

Prime Minister Andy Burnham , who has long advocated decentralisation from Whitehall , said that the move would prevent local leaders from having to go “cap in hand” to Westminster for investment funding.

Due to be formally unveiled in Wednesday’s Budget, the plans grant local authorities enhanced flexibility when making investment decisions.

Ministers have allocated an initial £285 million for next year, moving away from reliance on separate bidding pots managed directly from Whitehall.

Prime Minister Andy Burnham and Chancellor John Healey (Reuters)

In an effort to address criticism from areas which do not yet have strategic authority status, the Treasury said that they will still be able to access a share…