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Local Government Finance

Asked by Mr Lee DillonLiberal DemocratMinistry of Housing, Communities and Local GovernmentTabled Answered 7 January 2026UIN 101242

The question

To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made of the potential for fiscal devolution to narrow regional inequalities.

Answered by Miatta Fahnbulleh

The Government is committed to supporting regional growth. Analysis informed by OECD evidence shows that equipping local leaders with fiscal tools can stimulate investment in priority areas and foster sustainable growth. This is why we are pursuing further fiscal devolution through enhanced local revenue raising powers, including our intention to introduce a new power for Mayors to introduce a levy on short-term overnight stays. A public consultation was launched immediately following the Chancellor’s Budget statement and will run until 18 February.

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