UK Chancellor Announces Tax Devolution to Mayors

In a major policy shift aimed at revitalizing Britain's regional economies, Chancellor of the Exchequer Rachel Reeves announced plans on Tuesday to grant local mayors control over a portion of national tax revenues, including income tax, without raising overall tax rates. Speaking at the annual Mais Lecture at Bayes Business School in London, Reeves described the initiative as a "genuine break from the past," emphasizing that it would empower regional leaders to invest in growth where it is generated, fostering opportunities across the country beyond London and the South East.

Reeves tasked her officials with collaborating with mayors and businesses to develop a roadmap for this fiscal devolution, which will be detailed in the autumn budget. "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...