The UK Parliament’s House of Lords Economic Affairs Committee has opened an inquiry into fiscal devolution in England and invited written evidence on how far fiscal powers should be devolved to sub-national government. The inquiry is framed against a backdrop of limited fiscal autonomy for English local government and the Chancellor’s March 2026 commitment to set out at the Budget a roadmap for future fiscal devolution, including giving regional leaders control of a share of some national taxes. The committee is seeking views on the objectives and potential outcomes of fiscal devolution, the appropriate level for devolution (combined or local authority) and whether powers should vary by authority type. It is also examining which spending and revenue-raising powers could be devolved, how equalisation mechanisms might operate and be updated over time, and how to mitigate risks such as inter-region tax competition and distributional impacts. Further questions cover governance, scrutiny and accountability for local and mayoral strategic authorities, whether devolution should be paired with tax reforms such as council tax revaluations, transitional and implementation issues, constitutional implications, and lessons from international models.
UK Parliament 2026-04-24
UK Parliament's House of Lords Economic Affairs Committee launches inquiry and call for evidence on fiscal devolution in England
The UK Parliament’s House of Lords Economic Affairs Committee has launched an inquiry into fiscal devolution in England, seeking evidence on the appropriate extent of devolved fiscal powers for sub-national government. The inquiry examines which spending and revenue-raising powers could be devolved, how equalisation mechanisms should operate, and how to manage risks such as inter-regional tax competition and distributional impacts. It also considers governance, accountability arrangements, links to wider tax reforms, transitional and constitutional issues, and lessons from international models.