Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether central government grants to combined mayoral authorities will be reduced to compensate for the allocation of locally retained income tax receipts.

As set out in the ‘Rewiring the State’ Cabinet Statement, the government will replace grants from central government with a share of local income tax for every mayor beginning in 2028, such that where a region grows its tax base, it benefits from the increased receipts. This will begin on a fiscally neutral basis.

The government will publish a fiscal devolution roadmap at Budget 2026 which will set out our overall approach to revenue assignment for Strategic Authorities.