Economic Affairs Committee launches new inquiry on fiscal devolution in England

The House of Lords Economic Affairs Committee today invites written submissions to its new inquiry on fiscal devolution in England.

Despite a move towards greater devolution more generally – including devolution settlements with the administrations of Scotland and Wales – in England the fiscal powers granted to local government remain minimal.

In her March 2026 Mais Lecture, the Chancellor committed to publishing at this year's Budget a roadmap for future fiscal devolution which will cover “plans to give regional leaders control of a share of some national taxes” and be “focused on sharing and retaining a portion of existing revenues”. She stated that “these reforms will represent a permanent transfer of power and resources” and would be a “genuine break with the past.”

There is widespread debate about the extent to which devolution could help achieve several desirable outcomes, such as promoting economic growth and enhancing democratic accountability and legitimacy.

The committee is seeking answers to the following questions:

1. What are the general aims of fiscal devolution? What can it achieve?

2. At what level – combined or local authority – should devolution take place and should the nature of the devolution vary by type of authority?

3. What spending powers should be devolved to local areas?

4. What revenue-raising powers should be devolved to local areas?

5. What mechanisms of equalisation between areas should the Government consider and how might these be updated as differences between regions change? What mechanisms might be needed to avoid inter-region tax competition leading to insufficient aggregate tax collection?

6. What are the distributional consequences of further fiscal devolution?

7. What governance arrangements are needed as more powers are devolved to local areas? How should local and mayoral strategic authorities be best scrutinised and held to account for the exercise of any new powers?

8. Should devolution be paired with tax reforms, such as council tax revaluations, or can it be carried out separately?

9. What transitional issues need to be considered in devolving fiscal powers to local areas?

10. What risks does the Government need to consider in any further fiscal devolution?

11. Does fiscal devolution require wider constitutional change to be successful?

12. Which forms of fiscal devolution in other countries can the UK learn from?

Commenting on the launch of the new inquiry, Lord Wood of Anfield, Chair of the Economic Affairs Committee, said:

“The UK is an outlier in terms of how centralised our public finances are compared to other countries and earlier this year the Chancellor committed to giving regional leaders control of a greater share of some national taxes.

“At a time when the ambition for greater devolution is growing our committee will explore how fiscal devolution could work and what it could achieve. To inform our work we want to hear from as broad a range of people as possible. If you have a view on any aspect of our inquiry, look at our call for evidence and let us know what you think.”

The deadline for the submission of written evidence is 23:59 on Friday 5 June 2026.

Read the call for evidence and find out how to submit evidence.