Dr Lucy Martin, Director of the Brunel Centre, reacts to plans to give regional mayors a share of income tax revenue

Responding to today's Government announcement, Dr Lucy Martin, Director of the Brunel Centre, explains that linking regional funding to local performance, rather than to central government grants, gives regional leaders both the incentive and the authority to deliver sustainable, inclusive growth:

"Today's announcement marks the most significant shift in how England's regions are funded in a generation, a genuine chance to unlock the potential of regions like the West of England. The UK has long been the most fiscally centralised country in the G7, with 95% of tax revenue going straight to the Treasury. Today's announcement starts to change that, opening the door for regions to capture and reinvest more of the value they create.

Giving mayors a genuine share of income tax and business rates will finally connect local growth to local funding. And with that connection comes real accountability: when funding is tied to local performance rather than a Whitehall grant, local leaders gain both the incentive and the power to deliver sustainable and inclusive growth for their area, on their own terms.

Analysis by Centre for Cities suggests the West of England would need only around 2% of local income tax revenue to replace its current central grant — showing how modest a starting share could unlock a much bigger shift in incentives and responsibility. Getting the detail right including which taxes, what share, and a fair funding floor that protects places from shocks beyond their control will be key to making sure every region can seize this opportunity.

This is exactly the moment the Brunel Centre exists for. We provide the independent evidence the Greater West of England needs to make the most of it, and we'll be working with regional and national partners to strengthen the evidence base that helps our region maximise this opportunity and deliver sustainable and inclusive growth."

To learn more about the Brunel Centre's research on devolution and regional growth, explore our latest publications or get in touch with the team at thebrunelcentre@bath.ac.uk.