Rachel Reeves sets out plans to hand mayors a share of tax revenue

"I have asked my officials to work with mayors and businesses to develop a road map for future fiscal devolution to be published at this year's budget. This will set out plans to give regional leaders control of a share of some national taxes which have, for too long, been allocated by central government."

"The Chancellor said the move would not increase the tax burden but would share existing tax revenues with regional leaders, rather than the Exchequer controlling the cash. They will look at income tax alongside other taxes, with reforms initially targeted at those places that have the greatest capacity to deliver them and the greatest potential to benefit."

Chancellor Rachel Reeves announced plans to devolve fiscal control to regional mayors by allowing them to manage a portion of income tax revenues for local investment. The proposal aims to shift control of existing tax revenues from central government to regional leaders rather than increasing the overall tax burden. Officials have been tasked with developing a detailed roadmap for this fiscal devolution, which will be presented at the autumn budget. The reforms will initially target regions with the greatest capacity to implement them and the most potential to benefit. Additionally, city investment funds totaling 2.3 billion pounds will be established, with initial focus on northern England and the West.

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