Devolution Proposals and Financial Transfers
Chancellor John Healey's budget outlined plans to devolve income tax receipts to strategic authority mayors by 2028, alongside a commitment to transfer 20% of business rates revenues to mayors next year and 100% by the end of the decade. The plans also introduce an overnight visitors levy allowing mayors to tax hotel and B&B stays.
Coverage and Regional Concerns
While 14 areas are already governed by mayors and 10 more agreements are being finalised, concerns remain regarding regions excluded from the arrangements. Local government reorganisation and stalled unitary authority plans present barriers in certain regions, with consultancy Oxford Economics noting that the devolution announcements would not lead to immediate revisions of regional economic forecasts.