HM Treasury Publishes Fiscal Devolution Roadmap for England
What happened
HM Treasury published a Fiscal Devolution Roadmap alongside the Budget on October 28. The roadmap outlines how mayoral strategic authorities in England will gain new revenue from commercial-property business rates and residents’ basic-rate income tax. Starting in 2027, these authorities will receive 20% of locally retained business rates and 20% of business-rate growth in their areas. Additionally, from April 2028, authorities will receive an assigned share of basic-rate income-tax revenue based on where taxpayers live.
From econotimes.com
Why it matters
The plan shifts local funding toward tax bases that vary by region. The government aims for local and regional government collectively to retain all business-rates revenue before the end of the decade. The Treasury is developing initial allocations that account for existing funding, new responsibilities, regional disparities, and local tax bases.
A new devolution study covers all four nations of the UK, and John Healey discussed radical devolution in England.
From econotimes.com
Who's involved
- HM TreasuryPublished the Fiscal Devolution Roadmap and manages policy implementation.
- John HealeyAddressed local leaders' funding needs and implements economic policy.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- British Retail ConsortiumSpeculative
Retailers might face increased operational risk due to changes in local tax bases and regional funding disparities.
Keep exploring
The entities involved
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England
country in north-west Europe, part of the United Kingdom
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John Healey
British politician (born 1960)
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HM Treasury
United Kingdom government department
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