The government intends to implement a significant devolution of powers to strategic and local authorities across England. This initiative is part of a broader strategy to foster economic growth in every postcode and address regional inequality.
The Exchequer Secretary to the Treasury, speaking at the West Midlands Growth Summit on 8 October 2026, highlighted that Britain has become one of the most regionally unequal industrialised economies since the 1980s. The government believes that shifting power and resources out of Whitehall is crucial for establishing a foundation of good growth everywhere.
A key focus will be on core cities and their surrounding areas with the highest potential for growth. The government estimates that increasing the productivity of the five largest Mayoral Strategic Authorities outside London to the national average could contribute approximately £53 billion to the UK's economic output. Plans also include supporting local councils to improve financial stability and publishing the 'Rewiring the State' delivery plan later this year to devolve more powers in areas such as skills, housing, transport, and innovation.