Rachel Reeves calls for devolution at a 'greater scale' in likely final speech as Chancellor
Rachel Reeves is expected to be replaced as Chancellor by Andy Burnham when he enters Downing Street next week.
Rachel Reeves has said that she hopes the devolution of power in her time as Chancellor does much to end the “frustration” that northern MPs, like herself, have felt.
Ms Reeves gave what is likely her final speech in charge of the nation’s finances in the City of London on Tuesday night.
The Leeds West and Pudsey MP is expected to be replaced as Chancellor by Andy Burnham when he enters Downing Street next week.
Ms Reeves reflected on her time as the first female Chancellor in the post’s 800-year history.
She said: “Radical change is only possible if it comes with credibility.
“That is my mission as Chancellor, that is the mission of this government and I know it will remain the mission of the next.”
She highlighted devolution as one of her major achievements of her time in No11.
In her Mansion House speech, she said: “Yesterday, I met with Mayors from across Britain.
“Their frustration is familiar to me from 16 years as a Leeds MP of knowing the right priorities for your own area, but not being empowered to deliver them.
“We have made progress. This government has done more to devolve power in the last two years than its predecessors did over the last two decades:
“Expanding integrated settlements so that more Mayors receive a single multi-year funding pot with flexibility to decide how money should be spent,
“Introducing City Investment Funds, giving established regional leaders control over long-term, self-sustaining capital where returns can be re-invested for further growth and giving mayors the power to introduce an overnight visitor levy.”
But Ms Reeves said that “devolving real power means doing this at a much greater scale”.
In her Mais lecture, the Chancellor set out plans for fiscal devolution in the upcoming Budget.
She said this should include “giving regional leaders control over a share of national taxes including income tax and business rates”.
“There is much further to go,” she added, “but the steps I have taken put us on a path to a permanent transfer of power and resources away from central government towards long-term investment, local accountability and regional leadership to create growth in every part of our country.”
Henri Murison, chief executive of the Northern Powerhouse Partnership, said: “The Chancellor has been steadfast in her support for the Northern Growth Corridor, backing places on both sides of the Pennines through her commitment to Northern Powerhouse Rail and the wider case for improving rail connectivity between Manchester and the Midlands.”
“A huge amount has already been achieved on devolution. In particular, I welcome her bold approach to devolving tax powers, from the new overnight visitor levy through to giving Mayors greater control over income tax and business rates.
“This progress on fiscal devolution will be fundamental to achieving the critical goal of extending opportunity and prosperity by putting the levers needed for unlocking private investment, through retaining the benefits of growth, into the hands of places.”