The All-Party Parliamentary Group on Local Government has today called for a new fiscal devolution framework that balances local shares of national taxes with robust equalisation safeguards.
The outcome of the APPG’s major inquiry into fiscal devolution comes hard on the heels of the current Chancellor’s commitment to publish a new roadmap for fiscal devolution at the Autumn Budget and Andy Burnham’s promise to “bring about the biggest rebalancing of power our country has seen”. It aims to put the voice of local government at the heart of the debate.
The inquiry consulted a range of experts about how greater local control over taxation and revenue could drive economic growth, improve public services, strengthen accountability, and enable the long-term financial sustainability of councils and combined authorities.
Exploring how a more devolved fiscal system could equip local leaders with the powers and incentives needed to respond effectively to local challenges and opportunities, the APPG considered practical options for reform, including the assignment or devolution of existing taxes.
The findings are being published ahead of the Autumn Budget, with the aim of informing national debate and supporting the Government’s ambitions for growth, public service reform, and renewal.
