Plans to give the West of England and other regions the power to retain existing taxes raised nationally – potentially including a portion of income tax – have been welcomed by the Mayor of the West of England.
Rachel Reeves made the announcement in today’s Mais Lecture, with the Treasury set to work with mayors and businesses to make a roadmap for this landmark fiscal devolution. The Chancellor confirmed that the historic reforms will be fiscally neutral, representing a “permanent transfer of power and resources” to local leaders.
Helen Godwin, who leads the country’s fastest growing regional economy and the most productive region outside of London, has backed this unprecedented step forward – which follows on from plans announced in the Autumn Budget for mayors to be given the power to introduce an overnight visitor levy.
The Mayor has also given her strong support to plans for a deeper relationship between the UK and EU, and highlighted the West of England’s investment potential when it comes to £2.5 billion of new funding for AI. The region is already home to the UK’s fastest supercomputer, Isambard-AI, with a Growth Strategy that sets out an ambition to establish the country’s first AI Supercluster. A record amount has been announced to invest in quantum technology, with the West well-placed as the first region in the UK to sign a tech trade agreement with Elevate Quantum in the United States.
Helen Godwin, Mayor of the West of England, said:
“These new powers would be a giant leap forward, giving our region more control of our future. As the country’s fastest growing regional economy, we are already a major contributor to the Treasury – so the chance to invest some more of the proceeds of our growth and prosperity back into the West Country is something that people across our part of the world will welcome.
“Getting to keep a share of income tax and other national taxes here locally would be a game-changer for the West, whether that’s to invest in transport improvements, training opportunities, or anything else. As with the proposals for our region to have the power to consider introducing an overnight visitor levy, it is right that more decisions are taken here in the West of England, rather than in Westminster.”
Today, Chancellor of the Exchequer Rachel Reeves said:
“I want every part of Britain to do well. That’s why we’re going for growth all across the country, not just in a few places, because I want everyone to be able to succeed no matter what their parents do, where they grow up, or where they choose to settle down.
“Our economic plan is the right one. By bringing back stability in our public finances, boosting investment in our infrastructure and driving reform, we’re building a stronger more secure economy.”
