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Mayors to gain more spending power under Reeves tax plans

Chancellor Reeves plans to share a portion of existing income tax revenue with regional mayors to boost local investment and economic growth, focusing on areas with high potential.

  • On Tuesday, Chancellor Rachel Reeves announced plans to grant regional mayors control over a portion of income tax revenue, shifting decision-making away from Westminster to boost local investment and services.
  • The Chancellor also detailed 'city investment funds' backed by £2.3 billion in funding, targeting northern England and the West Midlands with a commitment to retain business rates.
  • Reeves announced a £2.5 billion investment in quantum computing and artificial intelligence to create 100,000 UK jobs, seeking to stop British technology firms from 'drifting abroad' to make money.
  • During Monday's Mais Lecture, Reeves argued Britain should align with European rules 'where alignment is in the national interest,' warning the country risks being 'stranded' without closer ties to Brussels.
  • The Conservatives criticized the government for 'blaming anyone but themselves for their economic failures' and 'wanting to row back on Brexit,' while questions persist over practical implementation and funding distribution.
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Rachel Reeves sets out plans to hand mayors a share of tax revenue

The Chancellor hopes the plan will help drive economic growth in regions across the country.

·London, United Kingdom
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Devdiscourse broke the news in India on Tuesday, March 17, 2026.
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