Title

FINANCE

The promise of fiscal decentralisation threatens to be a damp squib

Underneath the din of excitement at Rachel Reeves’ promise last week to provide regions with ‘control of a share of some national taxes’ there was a caveat that was largely overlooked.

Chancellor Rachel Reeves © UK Parliament

In her Mais Lecture, the chancellor of the exchequer not only said her move to further fiscal devolution for the sector would initially just target ‘those areas deemed doing well' but also that ‘their grant will go down to reflect this'.

While this will not necessarily burst the sector's bubble of enthusiasm over the Government's promised ‘roadmap for future fiscal devolution', set to emerge at this autumn's Budget, it will certainly deflate it.

Paul Marinko

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