The All-Party Parliamentary Group (APPG) on Local Government has launched an inquiry into fiscal devolution in England.

It will examine the potential for giving greater local control over taxation and revenue in devolved areas with metro mayors, with the aim of supporting economic growth and productivity, reduce regional inequalities, and invest in public service reform.

The move follows the Chancellor’s announcement that the Treasury will develop a roadmap for fiscal devolution for the Spending Review 2027.

Laura Hughes, Partner and Head of Public Law at UK and Ireland law firm Browne Jacobson, led the legal work on establishing the first combined county authorities in the East Midlands, Lancashire and Greater Lincolnshire.

She said: “If we’re to truly realise the benefits of devolution, then fiscal devolution is needed – across England but also in all our devolved nations.

“While transferring powers on key issues such as transport, skills and housing from Westminster to local areas have had a transformative impact in many places, these benefits can only go so far without also offering greater fiscal autonomy. Without genuine control over taxation and revenue, local and regional leaders remain fundamentally dependent on the centre.

“If this inquiry is serious about examining how greater local control over taxation and revenue could support economic growth, improve public services and strengthen accountability, then it needs to grapple with the structural questions that have been ducked for too long.

“Any conversation about fiscal devolution in England can’t be had in isolation from the wider picture across the nations. Wales and Northern Ireland, for example, do not yet enjoy the same degree of fiscal devolution as Scotland. This asymmetry creates real tensions in the intergovernmental landscape that this government has not yet resolved.

“This inquiry has the opportunity to set out practical options for reform, including the devolution of existing taxes, as well as the safeguards and equalisation mechanisms that would be needed. It’s then up to government to use the legislative tools at its disposal to match the ambition set out.”