Fiscal devolution

Think tank: New Local

Author(s): Jessica Studdert

April 26, 2023

This report from UK think tank New Local looks at why we need fiscal devolution and how to make it work.

Despite localised revenue-raising powers being the norm in many countries, it has long been viewed as far too radical in the UK. But now, policymakers are beginning to recognise the value of letting local areas grow their own economies, rather than take a begging bowl to Westminster. But the term needs demystifying, and the various ways to do it need a thorough examination. In the latest in our New Thinking series, Jessica Studdert explains what fiscal devolution is, busts myths that it will lead to higher taxes, explores different ways to do it, and recommends how to make it happen.