Historic devolution plans will finally put local leaders in the driving seat, says IPPR

Responding to the prime minister's announcement on fiscal devolution, Mirte Boot, head of IPPR North, said:  

“The establishment of No 10 North laid the plumbing, but the water wasn't yet flowing. That changes today with this extraordinarily bold move. This would be the most significant shift in how England is funded in a generation.  

“Fiscal devolution is the key that unlocks the economic benefits of devolution, spurring on mayors and councils to invest in the transport, housing, and infrastructure that drives growth.

"The gap between London and the South East and the rest of England costs the country £30 billion a year, and saps the potential of people and places across the North and the rest of the UK. The chief cause of this is centralisation - England is the most fiscally centralised country in the G7.  

"For every £1 paid in tax, 96p goes straight to the Treasury. Local leaders know what their places need to drive 'growth in every postcode' - but until now they didn’t have the powers to make it happen.

“But fiscal devolution must pass two tests: mayors need the freedom to borrow against future revenues to fund long-term infrastructure, as London did with the Elizabeth line, and some of the proceeds must also be shared with slower-growing places."

For more than two decades, IPPR and IPPR North have been at the forefront of the devolution debate, helping to shape the case for shifting power and fiscal responsibility out of Westminster, recent work includes:

• Britons back local leaders with fiscal firepower
• On home round: The future of devolution
• IPPR giving evidence to the MHCLG select committee on fiscal devolution

ENDS

Mirte Boot and Aditi Sriram (economist at IPPR) are available for interview  

CONTACT

David Wastell, director of news and communications: 07921 403651 d.wastell@ippr.org  

NOTES TO EDITORS

• IPPR is the UK’s most influential think tank, with alumni in Downing Street, the cabinet and parliament. We are the ideas factory behind many of the current government’s flagship policies, including changes to fiscal rules, the creation of a National Wealth Fund, GB Energy, devolution, and reforms to the NHS. IPPR is an independent charity which has seconded staff to government departments including DHSC and DESNZ to support ministers on crucial policies such as the 10-year health plan and the industrial strategy: www.ippr.org