Autumn Statement misses a devolution trick for cities and counties

Despite declaring the government’s Northern Powerhouse initiative as being “at the heart” of the Autumn Statement, the chancellor George Osborne was quizzed on his limited devolution to cities and counties.


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By Samera Owusu Tutu

03 Dec 2014

Shadow chancellor Ed Balls drew closer attention to the limited regional devolution during his response, asking: “Why won’t [the chancellor] devolve full growth in business rates to all city and county regions to give them control?”

Early last month Osborne devolved decision-making powers from Whitehall to Greater Manchester as the first steps to towards the Northern Powerhouse initiative.

The initiative was Osborne referenced several times during the Autumn Statement. A directly elected mayor of Greater Manchester will be responsible for decisions over transport, housing, planning and policing.

According to research carried out by assurance, tax and advisory firm Grant Thornton, 44% of business believe fiscal devolution to cities should be a priority for in the UK.

Osborne announced that corporation tax setting powers would potentially be devolved to Northern Ireland, business rates have been devolved to Wales, and the setting of income tax rates and thresholds had been devolved to Scotland.  

CSW contacted the Treasury regarding the potential of future devolution to cities and counties, and is awaiting comment.

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