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A raft of new mayors and long-awaited ‘fiscal devolution roadmap' have been announced by the Government as part of the Autumn Budget.Devolution agreements to establish new mayoral strategic authorities are in the ‘final stages' for eight areas, according to documents accompanying chancellor John Healey's speech.They are:Devon, Plymouth and TorbayHertfordshireLancashireLeicester, Leicestershire and RutlandStoke and StaffordshireSurreyThames Valley (Oxfordshire, Berkshire and Swindon)WessexHowever, a question mark hangs over Kent and Medway, where a mayoralty will be formed if its ‘local government reorganisation outcome is compatible', with a foundation authority to be established if not.Cornwall will also be covered by its own foundation strategic authority.The Government reiterated its target of ‘full devolution coverage' across England by the end of 2028, with agreements for all remaining areas to be reached ‘as soon as possible'.Billed by Healey as ‘the most radical act of devolution in a generation', the ‘fiscal devolution roadmap' was also published, outlining proposals for increased business rates retention and a share of income tax.Mayors will receive 20% of business rates from next year, with councils receiving at least 70% by the end of the decade, working towards 100% retention as a whole.For mayors, business rates will replace investment funds, mayoral capacity funding and Local Growth Funds.The document adds this will not impact constituent councils' core funding.The proposed new system will retain the structure of the existing one, including top-ups, tariffs, resets, safety nets and levies, while bespoke arrangements in Greater Manchester, West Midlands, West of England, Liverpool City Region and Cornwall will come to an end.The Government is considering whether ‘capital grant funding for assets and infrastructure could be best delivered through the business rates retention system'.Ministers said the approach will ‘balance the rewards for driving growth with fairness and financial risk'.They added: ‘We will not impose new arrangements and want local leaders to agree it is the right model.'From 2028, mayoral authorities will also receive a portion of income tax, with grant funding used only ‘on an exceptional basis'.The roadmap states it will initially apply to the basic rate only and based on where taxpayers live rather than work.Funding allocations will be bespoke, based on existing funding commitments, new responsibilities, regional disparities, ‘economic factors' and the strength of regional tax bases.In future years, authorities will benefit from a share of additional revenue where growth is at or above the average across mayoral areas, but will ‘bear some of the downside risk' if it is below.A funding floor will be in place, proposed at 95%.

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FISCAL DEVOLUTION

Budget 2026: Fiscal Devolution Roadmap published and new mayors announced

By Martin Ford | 28 October 2026

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