£1.3bn investment set to drive major regional change as Hampshire and the Solent Combined County Authority moves closer to launch

A major £1.3 billion investment fund has been secured for the Hampshire and the Solent region, paving the way for the creation of a new regional authority that leaders say will deliver transformative economic and social change.

The funding will support the establishment of the Hampshire and the Solent Combined County Authority (HSCCA), which is expected to be legally formed in summer 2026. The new body will focus on boosting economic growth, improving transport connectivity, increasing skills opportunities, and delivering housing and environmental initiatives across the region.

Initially, the HSCCA will receive 40% of its investment fund each year during the 2026/27 and 2027/28 financial years. Additional funding will also be provided to help build the organisation’s internal capability as it prepares to take on its new responsibilities. The full investment allocation will be released following the election of a regional Mayor in May 2028, ensuring the authority is fully resourced to deliver long-term change.

From early summer 2026, the HSCCA is expected to gain devolved powers from central government. These will include responsibility for developing integrated transport strategies, controlling adult skills funding, prioritising new housing developments, attracting investment, addressing climate change, supporting public safety initiatives, and working with partners to improve health and wellbeing outcomes.

Local councils will continue to manage day-to-day services within their communities, while the combined authority will focus on strategic regional priorities.

A statutory instrument to formally establish the HSCCA and define its governance arrangements was presented to Parliament on Monday 16 March 2026. In preparation for its launch, an Interim Chief Executive, Dr Ruth Adams, has been appointed, alongside temporary senior officers including a Chief Financial Officer and Monitoring Officer. Recruitment for permanent staff is now underway.

Councillor Phil Jordan, Leader of Isle of Wight Council, described the funding as a historic opportunity for the Island.

“This strategic investment gives the Isle of Wight a once-in-a-generation chance to shape its own destiny. For the first time, we will have the resources and the influence to drive the changes our Island has long deserved – better connections, new skills, good homes, and opportunities that keep our young people here. Through the new Combined County Authority, we can unlock the Island’s creativity, resilience, and community spirit like never before. This is more than funding; it is confidence in our future. Together, we can, and will, build an Isle of Wight that is thriving, hopeful and leading its own story with pride.”

Councillor Nick Adams-King, Leader of Hampshire County Council, said the legislation marked an important step in strengthening local decision-making.

“This important legislation now before Parliament will enable our region to shape its own economic priorities, giving us the powers and tools needed to drive growth and improve outcomes for local people. It presents a huge opportunity for local leaders, businesses, and communities to work together to unlock our area’s full potential.”

Councillor Alex Winning, Leader of Southampton City Council, highlighted the wider benefits for communities across the region.

“This is a landmark moment for our communities. By working together, we will take powers and resources out of Westminster to shape our own local future, drive economic growth, and deliver real benefits for the people of Southampton and the wider region.”

Councillor Steve Pitt, Leader of Portsmouth City Council, also welcomed the announcement.

“Today marks an important step in granting our region the powers and investment it needs to shape our own future. For Portsmouth it will mean economic growth and new opportunities for residents and businesses. By working together, we can deliver real and lasting benefits for our communities.”

Hampshire County Council, Isle of Wight Council, Portsmouth City Council and Southampton City Council are continuing to work together to finalise the operational framework for the new authority, including drafting its constitution and establishing governance arrangements.

A dedicated HSCCA website has been launched and will act as the main source of information for residents once the authority is formally established. Updates on progress, details of devolved powers and information about the future Mayoral role are expected to be published in the coming months.

Regional leaders say the combined authority represents a significant shift towards locally driven decision-making, with the potential to reshape infrastructure, economic development and public services for communities across Hampshire and the Solent in the years ahead.