Finance
UK to Devolve More Fiscal Powers to Regions, Finance Minister Reeves Says
Published by Global Banking & Finance Review®
Posted on March 17, 2026
2 min readLast updated: March 17, 2026
Quick Summary
UK Finance Minister Rachel Reeves announced on March 17, 2026, that a roadmap for future fiscal devolution will be published in this year’s Budget, proposing to give regional leaders control over a share of some national taxes.
UK to devolve more fiscal powers to regions, finance minister Reeves says
Finance Minister Rachel Reeves Outlines Fiscal Devolution Plans
Overview of Proposed Fiscal Devolution
LONDON, March 17 (Reuters) - British finance minister Rachel Reeves said she was looking at ways to devolve more fiscal powers to different regions within the country, including some control of taxes, as part of efforts to drive growth and productivity.
Development of the Fiscal Devolution Roadmap
Reeves said on Tuesday, in a speech in London's financial district, that officials were working to "develop a roadmap for future fiscal devolution", which would be published at this year's budget.
Regional Leaders to Gain Tax Controls
"This will set out plans to give regional leaders controls of a share of some national taxes," Reeves said.
The finance ministry said the roadmap would "look at income tax alongside other taxes".
Economic Disparities and Regional Autonomy
The poor economic performance of regions outside the capital has become an increasingly serious problem for Britain.
The vast majority of tax and spending decisions are taken in London, in contrast to other European countries where greater regional autonomy has produced less inequality between cities.
Potential Impact on Britain’s Financial Architecture
Giving regional mayors the control of some tax revenues absorbed by the Treasury could represent a major shift in Britain's financial architecture, although the government has yet to say how far the reforms will go.
Comparisons with Other European Countries
London's share of the national economy has surged by over 3 percentage points since 2000 to 24%, at the expense of the vast majority of other British regions, according to official data.
Comparable data from the European Union statistics agency Eurostat show far less polarisation between regions in Germany and France.
(Writing by Andy Bruce in Manchester and Sarah Young in London, reporting by Muvija M and William Schomberg, editing by Catarina Demony)
Key Takeaways
- •Reeves will publish a 'roadmap for future fiscal devolution' in the 2026 Budget to grant regional leaders control over a portion of national tax revenues (Reuters Mar 17, 2026)
- •This move builds on prior fiscal devolution: Scotland, Wales, Northern Ireland already have powers over income tax, property taxes, and local levies (ONS; Wikipedia)
- •Fiscal devolution aims to stimulate regional growth, improve productivity and reduce inequality in a fiscally centralised UK (OECD, Centre for Cities analysis)
Frequently Asked Questions about UK to devolve more fiscal powers to regions, finance minister Reeves says
1What fiscal powers is the UK government planning to devolve to regions?
The UK government plans to devolve regional control of a share of some national taxes.
2Who announced the new fiscal devolution plans?
British finance minister Rachel Reeves announced the plans for fiscal devolution.
3When will the roadmap for fiscal devolution be published?
The roadmap for future fiscal devolution will be published at this year's UK budget.
4What is the main aim of devolving fiscal powers in the UK?
The main aim is to drive growth and productivity in different UK regions.