Question to the HM Treasury:

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.

This question was answered on 8th July 2026
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.