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Written question asked by Blake Stephenson (Conservative) on Monday, 29 June 2026, in the House of Commons. It was due for an answer on Wednesday, 1 July 2026. It was answered by Lucy Rigby (Labour) on Wednesday, 8 July 2026 on behalf of the Treasury.


Local Government Finance

Question

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of her policies for fiscal devolution in relation to income tax on trends in the level of funding for local authorities.

Answer

At her Mais Lecture, the Chancellor committed to work with mayors, businesses and other stakeholders to develop a fiscal devolution roadmap, to be published at the Budget, setting out plans to give regional leaders control over the allocation of a share of some national taxes.

In developing the roadmap, the Government has engaged extensively with mayors, businesses, think tanks and other external experts to consider the potential impacts of different approaches to fiscal devolution and inform policy development.

As set out at the Mais Lecture, this work includes considering income tax alongside other taxes. Reforms will support growth while maintaining fiscal responsibility, with appropriate equalisation and safeguards to manage revenue volatility.


Secondary information

Type
Written question
Reference
14050
Session
2026-27
Registered interest declared
Yes
Subjects
Income tax Local government finance
Link
View this Written question on www.parliament.uk