Local Government Finance

(asked on 28th August 2026) - View Source

Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the 10 Downing Street press release entitled PM hands mayors share of income tax to make lives better in every postcode, published on 30 July 2026, whether areas undergoing local government reorganisation will receive the same fiscal devolution powers as current mayoral authorities.


Answered by
Jim McMahon Portrait
Jim McMahon
Parliamentary Under-Secretary (Housing, Communities and Local Government)
This question was answered on 8th September 2026

In the Cabinet Statement of 31 July, we set out our intention that mayors will keep a share of local income tax, replacing central government grants, beginning in 2028. For areas to benefit from this, they will therefore need to be part of a Mayoral Strategic Authority. Greater Essex is a prospective Mayoral Strategic Authority area, as part of the Devolution Priority Programme, and we await confirmation from all relevant council leaders in Essex that they wish to proceed with devolution, ahead of legislating to establish the Authority.

Devolution is the transfer of powers and funding from national government to local areas. Local government reorganisation is about how the powers and funding that sit with local government are organised between councils. While local authorities will continue to be responsible for the critical daily services that their residents rely on, strategic authorities will be institutions with a wider regional focus, responsible for unlocking investment, infrastructure and economic growth across large geographies. It is Mayoral Strategic Authorities that will keep a share of local income tax rather than local councils, and so this stands independently of local government reorganisation and of accountability mechanisms for local authorities. Mayors will not have powers to change tax rates or thresholds.

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