What the £7m fund pays for

In his first budget, John Healey will set aside £7m for a full feasibility study of a northern Olympics bid, a Games that, if it went ahead, would be staged in the north of England in the 2040s. The work will look at:

• •the types of venues required
• •the transport links needed
• •potential costs
• •the prospects of developing a winning bid

It will involve the government, UK Sport, the northern mayors and the British Olympic and Paralympic Associations, the bodies who would ultimately be responsible for any bid. In May, before Andy Burnham entered No 10, the government had already commissioned a UK Sport assessment that could inform a 2040s bid.

Northern mayors and athletes behind the bid

The idea has been gathering support across the region. In June, mayors from across northern England met in Sheffield to discuss the possibility of a joint bid. More than 40 Olympians, Paralympians and elite athletes, among them Laura Kenny, Jason Kenny, Sarah Storey, Beth Tweddle and Tom Pidcock, have signed a statement backing a northern Games.

Burnham has argued a bid would "unlock opportunity across our towns and cities", and said he wanted people to feel the excitement "in their own towns and communities, not just watch it on the telly". He added that the region wants to explore how it could stage the Games again with the whole country behind it.

John Healey said this about the prospect of a northern Games.

First British Games since London 2012

A winning bid would make it the first Olympics and Paralympics hosted in Britain since London 2012. Healey pointed to that history when making his case, arguing that Britain's experience of London 2012 is proof the country can host the world, and that he is picking up the pace on the potential bid work. The Games, in his words, "will lift communities, create opportunities and give the UK a huge boost".

Reaction: sporting bodies welcome, London mayor sceptical

The British Olympic Association, ParalympicsGB and UK Sport issued a joint statement welcoming the news. It read: "Building on the success and legacy of London 2012, we look forward to working in partnership to explore this exciting opportunity."

Not everyone is convinced. Mayor of London Sadiq Khan has criticised the northern bid plans, saying that excluding London would be a "missed opportunity". Recent hosts have included Brisbane, Australia's third-largest city, which will stage the 2032 Games, following Sydney, Tokyo and London among recent host mega-cities.

The feasibility study funded by the £7m announcement will examine venues, transport, costs and the prospects of a winning bid, with the British Olympic and Paralympic Associations ultimately responsible for any bid.