Reeves' plan to hand mayors share of taxes

REGIONAL mayors could be given control of a share of national taxes including income tax to invest in their areas under plans announced by Rachel Reeves.

- DAVID HUGHES & SOPHIE WINGATE

The Chancellor said she would set out a “road map for future fiscal devolution” at her next budget in the autumn.

The move would not increase the tax burden, she said, but would share existing tax revenues with regional leaders, rather than the Exchequer controlling the cash.

Giving the annual Mais Lecture at Bayes Business School, in London, the Chancellor said: “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.

“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.”