A new era of opportunity: Government confirms £1.3bn investment fund for Hampshire and the Solent Mayoral Combined County Authority

Hampshire and the Solent region has been awarded an investment fund of £44.6 million a year for the next 30 years, totalling £1.3bn, one of the largest sums ever awarded

The announcement primes the new Mayoral Combined County Authority (MCCA) to be able to invest significant sums in the Hampshire and the Solent (HatS) region once it is established next year. The investment will be used by the MCCA to stimulate regional economic growth, support businesses to drive innovation, and expand opportunities for our communities.

From May 2026 Hampshire and the Solent Mayoral Combined County Authority, using its devolved powers, will steer this investment, to deliver tangible improvements across the region. The authority’s key powers and responsibilities will include:

• Transport: Responsibility for developing and implementing integrated transport strategies that improve connectivity across the region
• Skills and employment support: Authority over adult education budgets and skills funding, driving upskilling opportunities, and supporting pathways into high-quality employment
• Housing and strategic planning: The power to prioritise and deliver new housing developments and support the provision of affordable homes
• Economic regeneration and development: The ability to attract and retain national and international investment ensuring the region capitalises on its economic strengths

Through these devolved powers, the MCCA and its elected Mayor will be empowered to deliver locally driven projects, unlocking new opportunities for economic growth, improved infrastructure, and enhanced quality of life for all residents across the region. The Mayor, who will be elected in May 2026 for a four-year term in office, will work alongside council leaders from Hampshire, the Isle of Wight, Portsmouth, and Southampton on regional decisions that will be rooted in the needs and ambitions of local communities. Local service decisions will remain with the existing councils. 

Councillor Alex Winning, Leader of Southampton City Council said: “This is a game-changing opportunity for Hampshire and the Solent. With this investment, we can unlock new growth, create jobs, and build a brighter future for everyone in our region. This funding recognises the immense potential of our communities and puts the power to shape our local future firmly in our own hands.”

Councillor Steve Pitt, Leader of Portsmouth City Council, said: "There is huge potential for growth across Hampshire and the Solent and this funding can help turn it into a reality. It will allow the infrastructure and environment for new jobs, skills and homes and bring about opportunities that will mean real improvements for our residents and businesses."

Councillor Nick Adams-King, Leader of Hampshire County Council said: “This investment is a vote of confidence in the power of local leadership and giving communities the power to shape their own future. It’s about building prosperity from the ground up, with local voices leading the way.”

Devolution and the creation of a Mayoral Combined Authority is separate to the Government's plan for Local Government Reorganisation (LGR). LGR is progressing in parallel to Devolution and will see the 15 existing councils across Hampshire the Solent replaced by a smaller number of new unitary councils.