Local leaders will be handed powers to control a share of some national taxes under new plans unveiled by Rachel Reeves.
Delivering a lecture in the City of London on Tuesday, the chancellor said she had asked officials to draw up a roadmap for future “fiscal devolution”, which will be published at the Budget in autumn.
“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,” she said.
“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.”
She said the move to hand control of some national taxes from the Exchequer to regional leaders would not would not increase the tax burden.
Giving the annual Mais Lecture at Bayes Business School in London, the chancellor placed securing investment in towns and cities outside of London at the heart of her plan for economic growth across Britain in the years to come.
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